The National Association of State Credit Union Supervisors (NASCUS) invites you to join us at an exclusive event that brings state regulators, credit union leaders, and industry stakeholders together in a three-day, collaborative networking environment.
NASCUS’s annual State System Summit (S3), combines thought-provoking educational sessions and networking opportunities for attendees to renew and expand professional connections.
Agenda Topics
This year’s summit will offer a deep dive into the evolution, challenges, and opportunities of digital assets in the marketplace, the continuing rise of fintech, the future of credit union powers, and balancing regulation.
We will strategize on the myriad of challenges that lie ahead, including
- Worldwide Geopolitical Instability
- Lingering Pandemic Dislocation
- Looming Inflation
- Increasingly Sophisticated Cyber-Attacks, and
- Burgeoning Compliance and Supervisory Obligations
Location
The Waterfront Beach Resort
21100 Pacific Coast Highway, Huntington Beach, CA 92648
(Jan. 14, 2022) Aug. 15-17 are the dates for the NASCUS State System Summit (S3), set for Huntington Beach, Calif., the association announced this week.
The yearly event – the flagship event for NASCUS and the annual conference for the state credit union system – is a unique event which brings together credit union regulators and practitioners for a mutual exchange of dialog, problem-solving, and shared resources within the system during three days of learning and networking with friends, colleagues, and industry leaders from across the country.
Past events have included addresses and presentations from NCUA Board members, wide-ranging discussions on current and emerging issues. Those have included: employment trends at credit unions, crisis communications, CBD and hemp banking, legislative challenges and opportunities, and much more.
A hallmark of the S3 each year is the interaction among participants and dialog. The intimate setting and design of the program offers attendees to share ideas, express views and seek answers to their questions in a convivial atmosphere.
For more information and developments about the program over the coming weeks, watch the NASCUS website.
LINK:
NASCUS State System Summit (S3), Aug. 15-17, Huntingon Beach, Calif.
(Aug. 20, 2021) Continuing and new leadership for the state system was also seated during the NASCUS Annual Meeting, held in conjunction with S3.
Serving as officers for 2021-22 for the NASCUS Regulator Board are:
- Chairman: Rose Conner (administrator, North Carolina Credit Union Division)
- Vice Chairman: Janet Powell (chief of regulation and supervision – credit unions, Oregon Dept. of Consumer and Business Services)
- Secretary/Treasurer: John Kohloff (commissioner, Texas Credit Union Department)
Joining the three as directors on the regulator board are:
- Katie Averill (superintendent, Iowa Department of Commerce, Division of Credit Unions)
- Yolanda Ford (deputy superintendent of banking for community and regional banks, New York State Department of Financial Services)
- Steve Pleger (senior deputy commissioner, Georgia Department of Banking and Finance)
- Charles Vice (commissioner, Kentucky Department of Financial Institutions)
- Mary Ellen O’Neill (director, financial institution division, Connecticut Department of Banking)
Members of the regulator board serve three-year terms (Kolhoff and Ford were elected to new terms this year). However, one member is appointed to serve a one-year term by the chairman; O’Neill holds that seat for 2021-22.
Meanwhile, the NASCUS Credit Union Advisory Council also selected its leadership for the upcoming year:
- Mike Williams, president and CEO, Colorado CU (Colo.), chairman;
- Mike Ryan, senior vice president and general counsel, BECU, (Wash.), vice chairman;
- Jeff Dahlstrom, president, Southeast Financial CU (Tenn.), secretary.
Joining the three as directors are:
- Rick Stipa, immediate past chair and CEO, Trumark Financial CU (Pa.)
- Amy Nelson, CEO, Point West CU (Oregon)
- Cathie Tierney, president/CEO, Community First CU (Wis.)
- Brian Wolfburg, president/CEO, Vystar CU (Fla.)
- Amy Sink, CEO, Interra CU (Ind.)
Like the regulator board members, directors of the CUAC serve three-year terms (Williams, Nelson and Tierney won new terms in elections this year). However, like the regulator board, one member is appointed by the chairman to serve a one-year term; Sink was appointed for the 2021-22 term to that seat.
LINK:
(Clockwise from upper left: NASCUS’ Lucy Ito joins NASCUS Executive Vice President and General Counsel Brian Knight, and NCUA Office of Examination and Insurance Director Myra Toeppe in a discussion of key issues)
(Aug. 20, 2021) The surging Delta variant of the coronavirus is putting a damper on NCUA’s plan to resume on-site operations, including exams, the agency’s top supervisor told the NASCUS S3 conference this week.
According to NCUA Office of Examination and Insurance Director Myra Toeppe, the continued phasing-in of on-site operations depends on the virus variant. She indicated a timetable still needs to be determined. However, the agency is ready (and willing) to go into a credit union whenever it sees a risk to the insurance fund, she said.
“We’ll go in where we need to go in if we see a risk to the insurance fund; we have been clear on that,” Toeppe said during a Tuesday session of the conference. (She was sitting in on the session in place of NCUA Board Chairman Todd Harper, who was unable to attend.) “We do have problem case officers that are doing things. Our regional offices, if we need to be on site, they will get with the (NCUA) executive director to determine from an insurance perspective if we need to go in. We’ve actually had to do some conservatorships during this time. Those are the exception, not the rule.”
But Toeppe emphasized that the agency would move with caution in any event. “People matter,” she said.
The agency’s top examiner also offered a strong defense for NCUA’s call for third-party vendor exam authority. “We do need it,” Toeppe, a former savings and loan regulator, said. “When I first came over to NCUA, I was stunned we didn’t have third-party vendor exam authority. I was used to always having it.” She said her former agency was never accused of abusing the authority, “and it was never a problem.”
Toeppe said NCUA sees reliance “more and more and more” by credit unions on the use of vendors and third parties to help them in a number of areas. She cited data processing and lending as examples.
The agency executive asserted that use of third-party vendors can become a source of risk to the share insurance fund. “And that’s always my focus,” she said. “We want to be sure we aren’t exposing the insurance fund to undue risk. And that’s really where it comes from; it’s a risk perspective for NCUA.”
She added that if the agency secures the authority (which will take an act of Congress to do so), NCUA would use it cautiously. She disputed some reports that the agency would be “ramping up” such as by hiring 500 additional examiners. “I think we’d use (the authority) prudently, where needed, just exactly like the state supervisors have done,” she said. “Where it’s needed, when it’s needed when we see a risk– just like the state supervisors, they’ve used it prudently. The banking regulators use it prudently. I don’t think there would be any difference.
She said that using the authority, when needed, is necessary to avoid a regulatory blind spot. “From (the perspective of) managing the share insurance fund, that makes us very nervous. That’s one thing that keeps me up at night,” she said.
In other comments, Toeppe said:
- Cybersecurity is a persistent threat; the one risk that just doesn’t go away. “We have ebbs and flows of other risks, but cybersecurity just keeps coming,” she said. “It just doesn’t stop, it’s in everything. It’s the constant ‘come at you’ thing. It’s high level, persistent.”
- NCUA is not discouraging mergers among credit unions (as opposed to banking regulators with banks, under an executive order from President Joe Biden). “We don’t tell (credit unions) no you can’t merge, but we want to make sure they are doing the right thing.”
- She has no problem with credit unions buying banks, as long as the transaction is done well and the credit union has done its homework. “Everyone thinks we rubber stamp them,” she said, adding the agency does not. She said the transaction must make sense, and that the agency has be sure of the risk that the insurance fund is taking on with the transaction.
(Aug. 20, 2021) State credit unions are growing their assets and members, spurred to some extent by the financial impact of the COVID-19 pandemic, NASCUS President and CEO Lucy Ito told the opening session of the NASCUS 2021 State System Summit (S3) Tuesday.
Ito’s remarks were among the first at the S3 conference, which assembled a diverse group of more than 115 attendees throughout the country, including state regulators, credit unions, industry partners, and the media. The annual event serves as the state system’s annual conference, and offers a unique opportunity to bring together credit union regulators and practitioners for open dialogue and mutual exchange.
Ito indicated that state credit union asset growth of 21.3% from the end of the first quarter 2020 to end of first quarter 2021 (to $989.1 billion) was astronomical but not surprising, given the influx of savings most financial institutions experienced related to the financial impact of the coronavirus crisis. However, she did say that the membership growth of 3.67% for the period (to 61.4 million) – and decline in the number of state credit unions by just more than 2% (to 1,009) — was typical for the state system.
She noted that the consolidation of credit unions over the last three years, however, has slowed slightly. At year-end 2018, she said, the number of state credit unions dropped by 3.6%; the rate slowed to 2.3% in 2019. Last year, the number dropped at an even slower rate of 2.2%. “Possibly into 2021, consolidation could be slowed a bit in that credit unions may not be pursuing mergers given the other things that they are dealing with,” she said.
Notably, Ito reported, the state system at the end of the first quarter held slightly more than half (50.2%) of all assets in the whole credit union system; memberships were just under the halfway mark, she said, at 48.3%. Overall, two out of every five credit unions (38.8%) are state credit unions. However, state credit unions on average are larger than their federal brethren, at $492.3 million in assets, compared to $310.3 million for FCUs, she pointed out.
On conversions of charters, Ito said over the last 13 years (as of the end of the second quarter of each year), more credit unions (103) with more assets (about $60 billion) have converted from federal to state. She noted, however, that since 2016 when NCUA approved modernization of its field of membership rules for FCUs, that more credit unions have been converting from state to federal (50 conversions to federal charter, versus 40 to states). Those totals include the first two quarters of this year.
However, states continued to gain more assets in the conversions over that time period: $26.4 billion compared to $17 billion for conversions to federal. But that trend may be about to change. So far in 2021, she pointed out, there have been seven conversions, with four of those from state to federal and accounting for $2.4 billion in assets. The three federal to state conversions, she noted, totaled only $328.5 million in assets. “It makes me wonder if this is a turning point in conversions,” she said.
“At this time we have a state and federal system that is basically 50-50,” Ito said. “As we look to the future, factors that will affect future trends (of the share of the market) include continued mergers depending on the size of those and whether or not they change charters; conversions; interstate operations as state borders become less important in people’s lives; and field of membership flexibility.”
She said that, historically, when federal credit unions have converted to states, it is because of the field of membership flexibility that is available in some states, especially the ability to mix and match geographic community fields of membership with associations or with select employee groups.
In other comments, Ito asserted that charter competitiveness within the states will be a key to future growth and success. She noted that parity between credit union charters within states – and even parity between charters of other states (for at least five states: Connecticut, Idaho, Texas, Utah and Washington) or other financial institutions – will play an increasingly large role for states.
“Competitiveness is key; credit unions do need to be able to keep up and compete,” Ito said. “Certainly, as all of us experienced both in our professional and personal lives during the pandemic, just the digitization of our lives accelerated and certainly the pressures on credit unions and other depositories has grown much more intense.”
(Aug. 20, 2021) Producing new and updating existing resources that will strengthen the state charter is the aim of new program introduced by NASCUS this week in conjunction with the S3 conference. The association also announced three credit union system organizations have generously contributed to help deliver the program to the state system beginning in 2022.
According to NASCUS’ Lucy Ito, the NASCUS Dual Charter Resource Initiative (DCRI) will support such initiatives as statute modernization in individual states, researching and producing detailed comparisons between the federal and state charters, and producing a curated legislative digest that focuses on select state credit union legislation for strengthening state credit union codes.
The three organizations that have initially pledged to contribute to support the DCRI are CUNA Mutual Group ($150,000), American Share Insurance ($100,000, and PSCU ($20,000). Their contributions total $270,000.
Ito said all three of the initial DCRI partners recognize that a robust dual charter system for the future will assure the continued dynamism of the U.S. credit union system.
The NASCUS leader unveiled the program, and announced the contributions made by the three initial supporters, during the NASCUS president’s report delivered during the association’s annual meeting Tuesday.
“State charter advances benefit the entire credit union system, from state and federal regulators to state and federally chartered credit unions and their members,” Ito said. “It is essential to the system’s vibrancy that we work hand in hand to address the challenges ahead.”
More specifically, Ito said, through the DCRI, NASCUS and contributing partners will, on behalf of a stronger state charter, pursue progressive legislation and regulation, build relationships to foster charter innovation, guard against unnecessary federal pre-emption and expand awareness of options available to state-chartered credit unions.
She said the DCRI will begin development during the coming months and will move into the market early next year. Initiative sponsors will engage with the initiative through a series of financial contributions and program participation, she added.
LINK:
NASCUS Launches Dual Charter Resource Initiative
(Aug. 20, 2021) Also featured at this year’s S3 conference:
- Discussion of the employment challenges and opportunities before credit unions resulting from the coronavirus crisis by nationally recognized employment and human relations speaker (and president of the firm CUDoctor) Diane Reed.
- A review of the economic landscape as the country struggles to emerge from the financial impact of the pandemic by Thomas Siems, senior economist and director of research for CSBS.
- Insights into mortgage lending trends and strategic planning by Tracy Ashfield of Ashfield & Associates, a mortgage lending consulting firm for credit unions.
- Dialog about the problems with the appraiser credentialing system, as well as inequality in real estate appraisals and the impact on borrowers and sellers by NCUA Deputy Director, Office of Examination and Insurance Tim Segerson, and NASCUS General Counsel and Executive Vice President Brian Knight.
“This year’s Summit offered a program aimed at providing insights to key challenges and opportunities to the state system, maximizing attendee engagement, generating creative problem solving, and supporting nationwide interaction to bolster and grow the state system for years to come,” said NASCUS’ Lucy Ito.
(Aug. 6, 2021) Three key and “must attend” events for many in the state system are just days ahead. Here’s a rundown of the NASCUS-sponsored sessions, by their respective dates:
- Aug. 12 (Thursday) — NASCUS 101: The latest episode in this popular series covers, in just 30 minutes, NASCUS legislative and regulatory (L&R) resources, educational offerings and webinars, member engagement, as well as news and data. Additionally, the program shows members how to volunteer for a committee or working group, personalize member communications and sign up for regulatory and security alerts – as well as how to connect with other members to exchange ideas and collaborate. Also highlighted during the session: NASCUS’ latest product, Campus 365 (powered by BAI), which helps members hone their compliance and professional skills training, and more. The bi-monthly series — free and open to all NASCUS members — illustrates how collaboration among all 45 regulatory agency members, committees, credit unions, leagues, corporates, trade associations, and CUSOs can support the credit union system. NASCUS 101 is also scheduled for Oct. 14 and Dec. 9.
- Aug. 16 – KY Examiner School (open to all examiners): State credit union examiners from are invited to this session, developed to help examiners build skill sets and enhance their knowledge around a core area of topics. The virtual program starts 9 a.m. and runs until 4 p.m., ET. Among the scheduled speakers are Mark DeBree, managing principal, and Aaron Martini, director ALM services, both of Catalyst Strategic Solutions; Rayleen Pirnie, NEACH; Glory LeDu, president, LeagueInfoSight LLC; Kevin Chiappetta, president, QuantyPhi; and Brian Knight, NASCUS executive vice president and general counsel.
- Aug. 17-18 – 2021 NASCUS State System Summit (S3): NASCUS’ flagship event of 2021 (presented virtually) is a unique event which brings together credit union regulators and practitioners for a mutual exchange of dialog, problem-solving, and shared resources within the system. Key sessions scheduled at the two-day event include: Employment Trends: What is the New Reality?; The Changing World of Real Estate and Mortgage Lending; The Economic Landscape: 2021 and Beyond; Appraisal Industry in Conflict: Implications for Credit Unions. Also on the agenda: A “state of the state system” address by NASCUS President and CEO Lucy Ito, and comments from NASCUS state regulatory and credit union leadership.
LINKS:
Aug. 12 NASCUS 101 (via the NASCUS Member Portal)
Aug. 16 KY Examiner School Virtual Event Agenda, Registration
Aug. 17-18 Agenda, registration for NASCUS 2021 State System Summit (S3)
(July 23, 2021) The NASCUS 2021 State System Summit (S3) is now less than a month away – Aug. 17-18 – offering two days of learning and networking with credit union system leaders, colleagues and friends.
New for this year’s event – which is presented in virtual format – are:
- An attendee hub (for registered participants in S3), via NASCUS.org, that provides access to presentation downloads and on-demand videos of each session.
- “Gamification,” in which attendees earn points just by visiting the hub and interacting with the website. The top 10 participants with the greatest number of points win a prize.
The NASCUS 2021 S3, the flagship event for the state credit union system, is a unique event which brings together credit union regulators and practitioners for a mutual exchange of dialog, problem-solving, and shared resources within the system. Key presentations at this year’s event include those on employment trends, real estate developments, economic updates, and the state of the state system.
LINK:
Agenda, registration for NASCUS 2021 State System Summit (S3)
(July 9, 2021) Diane Reed, president of HRDoc in Fairfax, Va., is the latest speaker to be added to the roster addressing the 2021 NASCUS State System Summit (S3), a virtual event set for Aug. 17-18. Reed will be speaking about employment trends at credit unions. A veteran credit union human resources professional, Reed provides HR training (including policy creation and review), organizational structure planning and review, and more. Reed is slotted for a Thursday, Aug. 17, session at the S3 conference.
Also, as a reminder: Next week (July 16) the first session of the NASCUS/CUNA BSA/AML Certification E-School gets underway. The overall program runs through Dec. 14. The multi-month program helps credit unions be in compliance with all provisions of the Bank Secrecy Act (BSA) and Anti-Money Laundering (AML) regulations. The program also offers the opportunity for participants to earn or recertify their Bank Secrecy Act Specialist (BCACS) designation.
LINKS:
2021 NASCUS State System Summit (including registration and agenda)
BSA/AML Certification eSchool with CUNA (including registration and agenda)
(July 2, 2021) The NASCUS 2021 State System Summit (S3) is coming up Aug. 17-18 as a virtual event again this year, with the agenda for the event now coming together. Registration for the event also opened up this week.
Two days of learning and networking with friends, colleagues, and industry leaders from across the country are featured in the annual event, which is the state system’s annual conference. S3 is a unique event that brings together credit union regulators and practitioners for a mutual exchange of dialog, problem-solving, and shared resources within the state credit union system.
In addition to state system leaders – including NASCUS President and CEO Lucy Ito, NASCUS Regulator Board Rose Conner, and NASCUS Credit Union Advisory Council Chairman Mike Williams – the agenda also includes presentations by economist Thomas Siems, Ph.D., senior economist and director of research for Conference of State Bank Supervisors (CSBS) in Washington, and by Tracy Jean Ashfield, president of Ashfield & Associates, a Madison, Wis.-based consulting and training firm that assists credit unions with mortgage lending strategic planning and consulting.
For more details on this year’s S3 – including registration (which is open to Aug. 16) – see the link below.
LINK:
NASCUS 2021 State System Summit, Aug. 17-18 (virtual); registration, agenda, more