Invoices for operating fees, share insurance deposit adjustments coming to credit unions in March

Credit unions will be invoiced for operating fees and any adjustments due to their federal share insurance capitalization deposits in March, with payment due no later than April 15, according to a Letter to Federal Credit Unions Thursday from the National Credit Union Administration (NCUA).

For federal credit unions, the agency will note the operating fee and capitalization deposit adjustment due on a single invoice, the agency said in Letter 22-FCU-01.

The operating fees to NCUA, paid by federally chartered credit unions, will be calculated as a percentage of the credit union’s four-quarter average of total assets reported as of Sept. 30, June 30, and March 31, 2021; and Dec. 31, 2020. Federal credit unions with total assets of $1 million or less remain exempt from operating fee assessments, the agency said.

All federally insured credit unions – federally and state-chartered – will also be invoiced for any adjustment due in their 1% capitalization deposit with the National Credit Union Share Insurance Fund (NCUSIF). Any adjustment due will be calculated based on total insured shares reported as of Dec. 31, 2021, according to the letter.

Thursday’s letter, sent over the signature of agency board Chairman Todd Harper, notes a 23.7% decrease in federal credit union operating fee rates this year due to a combination of unspent fees paid in 2021, a budget surplus, growth in credit union assets, and a 40 basis points (BPs) increase in the overhead transfer rate for 2022.

The agency’s 2022 operating budget – the part of the agency’s overall budget that federal credit unions help to fund – is set at $320.138 million. That is about 37.3% of the total operating budget; the remaining 62.7% will be funded through the overhead transfer rate paid by the NCUSIF. The OTR represents the portion of the operating budget deemed to be insurance-related.

The NCUA letter notes that the agency will apply a credit of $15 million, as approved by the NCUA Board, to the total operating fee amounts due. It states that the other three factors resulting in lower fee rates include a 2021 budget surplus of $23 million that was used to offset the 2022 budget; growth in average reported credit union assets of 16.3% in 2021; and the change in the computed OTR between 2021 and 2022, from 62.3% to 62.7%.

NCUA Letter 22-FCU-01