February 2015
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FOCUS is the monthly e-Newsletter of the Office of Small Credit Union Initiatives (OSCUI). It focuses on helping small credit unions achieve success by providing news and highlighting opportunities. Subscribe here. |
 Featured this Month (Click on a heading to go to the article.)
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Headliner
SCU sees CDRLF as a path to growth
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Darci DePoppe, manager of Northern Energy FCU, is the credit union's sole staff member. |
NCUA awarded more than $1 million to 174 low-income credit unions during the final grant round of 2014. The majority of the funds, 105 awards totaling $693,000, went to encourage product and service additions through our New Product Initiative. Following is how one awardee used its award under this initiative.
Northern Energy FCU, a $1.7 million credit union in Mankato, Minnesota, received a $5,000 grant. The credit union used the award to implement a debit card program. Specifically, the funds were used to acquire software needed to implement the program.
"Startup costs of new products can have a large impact on small credit unions, and if we are unable to add to our services, we risk losing existing members or the ability to attract new members." That's how the credit union expressed its need for a debit card program in its funding request.
Since implementing the program last November, the credit union has experienced increased transaction activity from previously dormant accounts. The management also projects the new service will help attract new members. "We feel that, in the long term, this [new service] will allow us to not only grow our membership but have a very active membership... and attract young members," said Manager Darci DePoppe.
OSCUI is accepting CDRLF grant applications now through March 3 at 5 p.m. Eastern. Learn more in this month's Grants and Loans column.
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Webinars begin at
2 p.m. Eastern and last 90 minutes.
Register on our website.
March 25
Successful Strategies for Field of Membership Expansion
April 15
New Products and Services for the NCUA Grant Program
April 22
Credit Union Partnerships and Collaborations:
Success Stories
May 20
Cyber-Security:
The Basics
June 17
Remittances and Other Money Transfer Services
Aug. 19
Small Credit Union Accounting Issues
Sept. 16
Participation Lending in a Safe and Sound Manner
Oct. 21
Data Mining:
Golden Nuggets for Your Marketing Campaign
Nov. 18
Auto Lending
Dec. 16
Getting Started in Mortgage Lending |
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We value your input. Email suggestions for webinar topics to our Training division at
[email protected].
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In FOCUS with Bill
Shore enough for FOCUS?
We had our biannual OSCUI staff training event this month. The event featured a briefing by the Community Development Financial Institutions Fund and training from other external partners, including two consulting groups. We were also presented with two perspectives on business lending and one on subprime lending. From NCUA, we heard about the communications manual, field of membership application process, and small credit union examination procedures. Our own staff refreshed us on CUSP, secondary capital and pre- and post-charter processes. We work hard to keep up with the needs of our client credit unions.
In order to refresh OSCUI's strategic plan, we went through an exercise, "What if OSCUI were a credit union that was small, low-income, new, or a minority depository institution?" Similar to small credit unions, OSCUI has a shrinking FOM. We are not attracting the new demographic. We have to watch our relevance. We are going digital. We're limited by a single source of funding (government).
On the plus side, we believe in our mission. We know the basics of small credit union success.
Looking forward, we will need more specialized staff. We have to recognize our different audiences: client credit unions, funders (NCUA) and peers (other service providers). We have to get better at serving credit unions as they grow bigger. We're committed to this mission.
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OSCUI in the News
Recent media citings about our office and services
NCUA Media Release
Reminder: NCUA Grant Round Opens Feb. 2
NCUA Media Release
In addition to administering the fund, NCUA's Office of Small Credit Union Initiatives fosters credit union development and the effective delivery of financial services for small credit unions, new credit unions and credit unions with a low-income designation.
7 Credit Union Legal Predictions for 2015
Credit Union Times
Last year, NCUA's Office of Small Credit Union Initiatives issued new guidance in the form of a brochure -- "Truth in Mergers: A Guide for Merging Credit Unions" -- to assist credit unions in the merger process. This brochure is the result of a review of more than 430 mergers and is designed to help credit unions from the first steps in deciding if a merger is right for them through the final merger process, Wong said.
31 Credit Unions Agree to Late-Filing Penalties for Third Quarter of 2014
NCUA Media Release
"The number of late filers continues to drop, and that's encouraging," NCUA Board Chairman Debbie Matz said. "Hopefully, we'll soon have full compliance, which is really necessary for efficient data gathering and effective regulation. NCUA's Office of Small Credit Union Initiatives is still available to help smaller institutions, and we will keep working to get to the point where all credit unions file Call Reports on time."
NCUA Fines 31 CUs For Late Call Reports
CU Today
"The number of late filers continues to drop, and that's encouraging," NCUA Board Chairman Debbie Matz said. "Hopefully, we'll soon have full compliance, which is really necessary for efficient data gathering and effective regulation. NCUA's Office of Small Credit Union Initiatives is still available to help smaller institutions, and we will keep working to get to the point where all credit unions file Call Reports on time."
CEO Worries Industry Ignoring Loss of Small CUs
Credit Union Times "Merger is a business decision made by the credit union. Our Office of Small Credit Union Initiatives encourages credit unions to develop successful business plans, and a credit union may decide that a merger with another credit union of a similar size is a good idea. If so, OSCUI may offer information, but it is not NCUA policy to encourage mergers per se," he said.
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For Your Attention
This is America Saves Week
The America Saves Week website has lots of information to help you help your members reach their savings and debt reduction goals. Plus, learn about the Designation of Excellence for credit unions.
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Consulting
Do-It-Yourself expense analysis
Do you remember the line from the movie "It's A Wonderful Life" when George Bailey tells his dad, "this business of nickels and dimes and spending all your life trying to figure out how to save three cents on a length of pipe . . . I'd go crazy"? Well, in these times of compressed net interest margins and low ROAAs, lots of us are going crazy trying to save on that length of pipe!
In my consulting work, I am frequently asked to review a credit union's operating expenses. Before digging right into the general ledger detail, I like to know how the client's operating expenses compare with its peer group. You can do the same using NCUA's online Financial Performance Report. [Read the entire article.]
For questions about analyzing your credit union's operating expenses, contact our consultants by email at [email protected].
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Grants and Loans
Round 1 grant applications due March 3
NCUA seeks to award $360,000 in grants through Round 1 of the 2015 Grant Program. Low-income designated credit unions that have a CAMEL Composite rating of "3" or better are eligible to apply; priority will be given to credit unions with smaller asset sizes and new applicants. Grants will be awarded in two categories:
Training: $150,000 in aggregate awards for credit unions to obtain training for their staff or volunteers. Training may be on a range of topics including, but not limited to lending, collections, compliance, and business management. Each credit union awarded will receive $3,000.
Student internships: $200,000 in aggregate awards for credit unions to hire high school or college students for paid internships. The internships afford the students hands-on experience working in a financial institution and exposure to credit unions in particular. A credit union may receive up to $4,000.
Applications will be accepted until March 3 at 5 p.m. Eastern. Application materials and guidance are available on our website at www.ncua.gov/oscui/Grants. One application may be used to apply for both initiatives. NCUA will notify applicants of its funding decision during the week of March 30.
Email your questions about the application or initiatives to [email protected].
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Partnerships & Outreach
Get ready for National Consumer Protection Week
NCUA, along with other federal government agencies and private organizations, is promoting consumer education during National Consumer Protection Week. The event takes place the first full week of March each year. Watch the video clip below for information on how your credit union can help its members take advantage of their consumer rights and make better-informed decisions.
Share this issue with your colleagues who are not subscribers.
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Happening in OSCUI
Information and updates
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OSCUI Director Bill Myers introduced Annie Donovan, the new Director of the CDFI Fund, during her visit to NCUA. |
Outreach
During its biannual training event earlier this month, OSCUI hosted Annie Donovan, the recently appointed Director of the Community Development Financial Institutions Fund.
OSCUI Director Bill Myers had meetings with officials of the U.S. Small Business Administration, the Consumer Affairs division of the Federal Deposit Insurance Corporation, and the National Association of State Credit Union Supervisors.
OSCUI Director Bill Myers and EDS Dominic Carullo will participate in the first joint NCUA-SBA webinar. "Balancing Member Business Loan Portfolios with SBA Guarantees," will be held March 4, 2015, at 2 p.m. Eastern. Click this link to register.
Program updates
Grants and Loans: NCUA executed a $500,000 loan agreement with a credit union to implement risk-based consumer lending for borrowers that are subprime or have no credit score.
Training: The "Field of Membership" webinar originally scheduled for January was rescheduled to March 25. Refer to the 2015 OSCUI Webinars schedule above, for the registration link.
Thank you for your service
We honored Economic Development Specialist Carl Banks on the occasion of his retirement during our bi-annual training event this month. Carl's career with NCUA spanned 29 years, beginning as an examiner in Houston. He was first appointed an EDS in 1996, under NCUA's Region V EDS Program - Special Actions. In 2005, he continued to serve as an EDS when the regional programs transitioned to national administration under the Office of Small Credit Union Initiatives. Carl earned several awards at NCUA for his outstanding service to small and low-income designated credit unions including:
- 1997 - Serving the Underserved Achievement Award
- 2004 - Award of Appreciation for his efforts and results with Region V's Small Credit Union Program
- 2004 - Office/Field Team of the Year Award - Small Credit Union Working Group
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Lynda Milton, CEO of Team Financial FCU (above), and Armando Martinez, CEO of Kingsville Community FCU (above right), both pictured with Carl, were among the invited guests and NCUA staff to congratulate Carl on his career successes. | |
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Announcements
Non-NCUA sponsored events and opportunities
Grants and Loans
The NEXT Opportunity Awards accepting applications through March 11: The funding is a pool of $8.25 million, which includes $7.5 million in low-cost, long-term debt and $750,000 in unrestricted grant funding. Up to four CDFIs per year that present compelling strategies for expanding coverage may win a NEXT Opportunity Award. In 2015, applicants must be CDFIs that have innovative strategies to expand consumer financial services strategies. Certain credit unions may be eligible to apply.
Partner Events
Important Updates for FY 2015 CDFI Program and NACA Program: The CDFI Fund recently announced the following regarding its 2015 programs:
Matching funds waived for certain programs: Only CDFI Program applicants seeking Core awards are required to provide evidence of matching funds to support their FA requests. Matching funds requirements are waived for applicants to Financial Assistance through the NACA Program, the Healthy Food Financing Initiative, and the Small and Emerging CDFI Assistance component of the Community Development Financial Institutions Program.
Extended deadline for new SECA and NACA FA applicants: The CDFI Fund is providing an additional 45-day application submission window for eligible organizations that did not submit a SECA component or NACA Program FA application by the original application deadline of November 24, 2014. A new SECA component or NACA Program FA applicant can also submit a HFFI application by following the instructions in the application guidance materials, which can be found on the CDFI Program and NACA Program pages of the CDFI Fund's website and through Grants.gov. Applications are due by 11:59 p.m. Easter on March 5.
Contact Information for Questions: Applicants may contact the CDFI Program and NACA Program Help Desk with questions by calling 202-653-0421, option 1, or by email to [email protected]. Staff will answer such questions until 5 p.m. Eastern on March 5.
CFPB launches tools and resources to help homebuyers and homeowners. "Owning a Home" is new online source of tools to help prepare people for the home-buying process.
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Pamela L. Williams
Editor
Contributing writers: Robert Jones, William Myers, Jason Penn, Oscar Trejo, Geetha Valiyil |
NATIONAL CREDIT UNION ADMINISTRATION
The Office of Small Credit Union Initiatives
1775 Duke Street, Alexandria, VA 22314 |
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