Legislative & Regulatory Update

Holiday cheer abounds in Dakota credit unions; FinCEN deadline extension; NCUA’s reporting standards and impact; and growth in lending amid rising delinquencies. 

by John Alexander, Director of Legislative & Regulatory Affairs

Holiday Cheer Abounds in Dakota Credit Unions
This Christmas, the real magic in the Dakotas isn't just in the twinkling lights or the festive decorations; it's in the heartwarming efforts of local credit unions. Places like Town and Country CU, Aspen FCU, Capital CU, Affinity First FCU, and many, many more are showing what the holiday spirit is really about: community, caring, and a bit of holiday cheer.

It's more than just numbers and finance for these community-focused institutions. They're getting hands-on, spreading joy and warmth in ways that matter. Whether it's organizing a toy drive or hosting a holiday event, these credit unions are making sure everyone gets a taste of the festive joy.

And here's the thing – there's more out there. Many other credit unions are lighting up the season in their unique ways. So, if your credit union is doing something special for the holidays and you want to share the cheer, drop us an email. Let's get the word out and celebrate the spirit of giving that's alive and well in the Dakota region. After all, isn't that what this time of year is all about?

FinCEN Deadline Extension: A Breather for New Dakota Companies
Here's some good news for new companies sprouting up in the Dakotas in 2024. The Financial Crimes Enforcement Network (FinCEN) just extended the deadline for these fresh Dakota faces to file their first Beneficial Ownership Information (BOI) reports. Now, if you started or registered your company in 2024 in either North Dakota or South Dakota, you'll have 90 days after your registration becomes effective to submit your BOI report. Remember, FinCEN's not accepting any reports until January 1, 2024.

This move, as FinCEN Director Andrea Gacki points out, gives Dakota-based startups and businesses a better chance to get familiar with this new requirement and gather the needed info. The extension is expected to ease these companies into compliance and contribute to a more effective BOI database.

For companies in the Dakotas established before 2024, the initial BOI report deadline remains January 1, 2025. For those emerging on or after January 1, 2025, they'll have the standard 30-day window. Got questions or need guidance? FinCEN's website at FinCEN is the place to go.

NCUA's Reinforced Reporting Standards: Impact on Dakota Credit Unions
Dakota credit unions, take note: The National Credit Union Administration (NCUA) is reinstating penalties for late submissions of the NCUA Form 5300 Call Report, effective January 1, 2024. This decision directly impacts credit unions in North and South Dakota, emphasizing the need for timely and accurate financial reporting.

The NCUA's move to reinstate these penalties, which were suspended since 2019 due to the pandemic, underscores the importance of up-to-date information in maintaining the integrity of the financial system. Dakota credit unions are being reminded to stay vigilant about their reporting obligations.

To support credit unions in meeting these deadlines, the NCUA plans to send reminders and acknowledges that extenuating circumstances will be considered when assessing penalties. This change is a call for Dakota credit unions to ensure compliance and maintain high standards in financial reporting.
For detailed information on Call Report filing requirements, Dakota credit unions can visit the NCUA website for guidance and resources.

Credit Unions See Growth in Lending, Assets, and Insured Shares Amid Rising Delinquencies
The National Credit Union Administration (NCUA) dropped some fresh stats today, and it's a mixed bag for federally insured credit unions. On the one hand, total loans shot up by $132 billion, a solid 9.1% jump, reaching a whopping $1.59 trillion. Assets weren't far behind, growing by $79 billion to a grand total of $2.23 trillion. Insured shares and deposits also got a boost, climbing by $23 billion.

But here's the rub: delinquencies are on the rise too. The overall rate ticked up to 72 basis points, with credit card and auto loan delinquencies hitting harder. NCUA Chairman Todd Harper points out that while credit unions are holding steady, they're feeling the economic squeeze.

The report's got more nuggets: Net income is down a bit from last year, but interest income has seen a hefty rise. And while savings are up, people are moving away from regular shares. Net worth is also up, giving a little more cushion. For the full picture, dive into the NCUA's Quarterly Data Summary at NCUA.gov.

As always, feel free to contact me with any legislative or regulatory concerns.