The weekly recap featuresnews on regulatory actions, mergers and other issues facing the credit unionspace. Send tips, ideas and chatter to ken.mccarthy@spglobal.com.
News
*Royal Bank of Scotland GroupPlc reached an agreement with the U.S. National Credit UnionAdministration to pay $1.1 billion to resolve two outstanding civil lawsuitsclaiming that it mis-sold RMBS to now-defunct andWestern Corporate Federal CreditUnion in the runup to the 2008 financial crisis. In connection withthe settlement, the NCUA will dismiss its pending suits against RBS, which hasnot admitted fault in the settlement. The NCUA is still pursuing lawsuitsagainst other financial institutions, including and , for similarcomplaints.
*Omaha, Neb.-based Mutual of OmahaBank appointed Debbie Matz as director, CUToday reportedSept. 27. Matz, a former the chairwoman of the NCUA, served two separate termswith the regulatory agency before retiring in April.
* Itappears that, in at least one state, size does matter when it comes to credit unionmembership growth. Virginia is home to two of the three largest credit unionsin the country by assets in NavyFederal Credit Union and Pentagon Federal Credit Union, and both have seen stronggrowth in the past year. Vienna, Va.-based Navy Federal's growth was 11.6% on ayear-over-year basis at the end of the second quarter of 2016 while Alexandria,Va.-based Pentagon saw 7.8% membership growth in the past year. But membershipgrowth for Virginia credit unions excluding the two behemoths was just 2.8%during the same period, an S&P Global Market Intelligence study found.
*Clifton, N.J.-based Self Reliance (NJ) FCU changed its name to Nova UA Federal Credit Union, according to the creditunion's website. A notice posted on the credit union's Facebook page Sept. 15said the name change was effective Sept. 19.
*The National Association of State Credit Union Supervisors will hold its annualsummit this week in Chicago. Among the featured speakers will be NCUA ChairmanRick Metsger, Illinois Gov. Bruce Rauner and U.S. Rep. Randy Hultgren.
Regulation/legislation
* Asthe California legislature wrapped up its 2015-2016 session, Gov. Jerry Brownsigned severalbills into law that could have a big impact on the state's credit unions.Among the legislation was Assembly Bill 2274, which goes into effect Jan. 1,2017. The bill modernizes the California state credit union charter for thefirst time in almost a decade. Also noteworthy is Assembly Bill 2693, whichaddresses the issues of Property Assessed Clean Energy (PACE) loans. The greenenergy loans are being provided by unregulated lenders while enjoying asuper-priority lien status, the California and Nevada Credit Union Leaguessaid. The bill requires a new truth-in-lending disclosure to be provided toconsumers and also provides for a three-day right to cancel.
*The Credit Union National Association and the National Association of FederalCredit Unions announced Sept. 29 that they plan to hire Williams & ConnollyLLP to challenge a lawsuitrecently filed by the Independent Community Bankers of America against the NCUAand its member business lending rule. "NAFCU and CUNA/League system willtake whatever actions are necessary to protect and defend the interests ofcredit unions and small businesses," said Dan Berger, president and CEO ofNAFCU, and Jim Nussle, president and CEO of CUNA. "Our trade associationssupport the NCUA's member business lending rule, which is consistent with thelaw and allows small businesses more access to the capital they need."
*NCUA Board Chairman Rick Metsger is proposing rebranding the agency's Office ofConsumer Protection. Pending board approval, the office will be renamed theOffice of Consumer Financial Protection and Access, which the regulator saidreflects its role in facilitating access to credit unions through charteringand field-of-membership functions. "Consumer protection is not justregulating what a credit union can't do. It's also about making sureregulations do not inhibit credit unions' ability to serve members, includingthose of modest means, with safe and sound products that are financiallysustainable for the credit unions," Metsger said.
M&A
*Middletown, Conn.-based MiddConnFederal Credit Union is set to merge into Wethersfield, Conn.-based , effectiveNov. 1, according to an announcement posted on Dutch Point CU's website. Apress release posted on CUInsight.com said federal and state regulators as wellas MiddConn FCU members have approved the proposed merger, which will see acombined institution with about 23,500 members, seven branches and assets ofmore than $280 million.
*Columbus, Ohio-based TelhioCredit Union said Oct. 3 that it has with Hamilton, Ohio-basedChaco Credit UnionInc. Telhio CU will convert to a new core banking systemimmediately and upgrade Chaco CU's system over the next eight months, accordingto a news release. The merger makes Telhio the fifth-largest credit union inOhio, with 72,000 members and approximately $780 million in assets, the releaseadded.
*Clearwater CreditUnion completed its merger with Lewis Clark Credit Union effective Oct. 1. The merger ofthe two Lewiston, Idaho-based credit unions was determined by officialmembership ballot, and has been finalized and approved by the NCUA and theIdaho Department of Finance.