The Pulse 02-22-2018

Volume 7, Issue 8.5



NCUA approves $735.7M distribution for 3Q 2018

CUNA and state credit union league advocacy resulted in the National Credit Union Administration (NCUA) board approving share insurance fund equity distributions at recent meetings, with the dividends expected to go to eligible credit unions in the third quarter of this year. The closure, and subsequent merger of, the Stabilization Fund into the Share Insurance Fund, will result in equity distributions totaling $735.7 million in 2018.


“It’s because CUNA, the leagues and credit unions made their voices heard that equity distributions will go to credit unions this year. Had NCUA listened to others, credit unions would be facing a $1.33 billion premium assessment this year,” said CUNA President/CEO Jim Nussle. “We thank NCUA for listening to the vast majority of the credit union system.


The $735.7 million is larger than the cumulative amount of all previous cash distributions since the capitalization of the Share Insurance Fund.


The board also adopted a method for pro rata stabilization-related distributions based on each credit union’s quarterly average insured shares. This closely approximates the method CUNA advocated for in its comment letter last September.


Under the final rule, a credit union is eligible if it filed a quarterly call report as a federally insured credit union for at least one reporting period in calendar year 2017.


This includes:


  • Active federally insured credit unions as of Dec. 31, 2017;
  • Newly chartered federally insured credit unions that filed at least one call report for a reporting period in 2017;
  • Financial institutions that converted to federal share insurance during 2017, provided they filed at least one call report as a federally insured credit union for a reporting period in 2017;
  • Credit unions that converted to private insurance, provided they filed at least one call report as a federally insured credit union for a reporting period in 2017; and
  • Liquidation estates, provided the liquidated credit unions filed at least one Call Report as federally insured credit unions for a reporting period in 2017.


NCUA has posted an FAQ document about the rule, and said it will post a calculation tool on its website to help credit unions calculate their distributions.



News from the MnCUN Board of Directors

The Network’s Board of Directors represent the interests of credit unions all of sizes and from all parts of the state. The Board works together with MnCUN’s President & CEO to ensure that all member credit unions receive high-quality service and that the interests of Minnesota credit unions are promoted both at the state and national level.


The following is an overview of issues recently addressed by the board:


  • Welcome New Members: The Minnesota Credit Union Network staff and board welcomed Members Cooperative Credit Union and Novation Credit Union as affiliates in 2018.
  • Excellence in Advocacy Recognized: The Board of Directors recognized Minnesota’s credit unions for raising 112 percent of their goal for the Credit Union Legislative Action Committee, (CULAC), the Credit Union National Association's (CUNA) federal PAC in 2017.
  • Health insurance: the Network is currently investigating the possibility of creating a cooperative healthcare insurance opportunity for credit unions.


A full listing of Minnesota Credit Union Network Board members can be found on the MnCUN website. With question, contact MnCUN Vice President - Communications and Engagement Andrea Molnau by email or by phone at 651-288-5527.



MnCUN Partnering with Jump$tart Coalition to Offer Life Simulation

The Minnesota Credit Union Network is partnering with Minnesota Jump$tart Coalition to offer a Life Simulation during the coalition’s upcoming event. Geared toward financial educators, the April 26 event will provide tools to promote healthy saving, spending, and borrowing when money is tight.


During the three-hour activity, participants will be grouped into “families” struggling to make ends meet in a simulated month of four fifteen-minute weeks. Each participant will play a unique role within the family. These simulated families will visit a variety of booths, including a school, employer, pawn shop and payday lender. Through the exercise, educators will encounter events and financial crises faced by many low-income Americans, including eviction, loss of utilities, lack of reliable transportation, crime, and the moment-to-moment stress of making ends meet. After the exercise, participants will share ways their organizations can best serve families living under financial stress.


The Minnesota Jump$tart is part of the national Jump$tart Coalition for Financial Literacy, which brings together individuals and organizations to improve the personal financial literacy of Minnesota’s Youth. The Coalition hosts an annual event or conference in April in celebration of National Financial Literacy Month. Other events and activities have included networking events for partners, webinars for young adults, scholarships for teachers to attend the national conference, a young adult mentoring program, and more.


To represent your credit union as a volunteer during the life simulation, contact MnCUN Director of Communications Laura Whittet by email or by phone at 651-288-5503.





Follow the links on the stories below to read more about the outstanding programs, new initiatives and well-deserved recognition received by your peers recently. Got news of your own? Send stories, pitches, press releases and published articles to MnCUN Director of Communications Laura Whittet.




Annual Conference Speaker Highlight: Kirk Drake

The Minnesota Credit Union Network Credit Union Annual Conference will be held Wednesday, April 4 through Friday April 6, at the Radisson Blu Mall of America in Bloomington. This meeting offers opportunities for exhibitors and credit union professionals alike. Attended by more than 300 credit union CEOs, senior executives, staff and volunteers annually, this conference also offers the state's largest credit union exhibit hall.


Kirk Drake is a lifelong entrepreneur, author, and founder of Credit Union 2.0. He is a credit union and technology enthusiast who built eight successful businesses, notably the Credit Union Service Organization (CUSO) Ongoing Operations, CU Wallet – a mobile wallet venture, and several additional lifestyle e-commerce/mobile platforms.


Kirk’s session, The Credit Union 2.0 Movement, shares why credit unions need to change through key case studies and lessons learned from other cooperatives. His breakout session will build on information shared in the general education and provide tools for credit unions to begin, enhance or evolve their digital strategy.


Full meeting details, a schedule of events, and registration can be found on the Annual Conference page of the MnCUN website.



CIF Supports Financial Education, Minnesota Credit Union Foundation

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Credit unions can contribute to the Minnesota Credit Union Foundation (MnCUF) by investing in the National Credit Union Foundation's (Foundation's) Community Investment Fund (CIF). By investing in CIF, you help to expand the capacity of credit unions to serve members and communities, while earning a return for your credit union.


Credit unions investing in the CIF receive 50 percent of the dividend of their investment. The remaining 50 percent is distributed to the Foundation, half of which the Foundation returns, pro-rata, to the leagues or foundations of investment origin.


Through credit unions’ generous investments, the National Foundation has led financial literacy programs such as Biz Kid$ and Reality Fairs, provided people with access to affordable financial services, savings and asset accumulation, and much more.  


For federal credit unions, a hybrid investment is also available in the form of a Charitable Donation Account (CDA) which permits expanded investment powers to fund charitable contributions.


For more information and investment options, see the National Credit Union Foundation’s CIF page.

Minnesota Credit Union Network
555 Wabasha Street N, Suite 200
St. Paul, MN 55102

(651) 288-5170
(800) 477-1034