The Long ViewNCUA Chairman Debbie Matz

Presentation toCredit Union Association of the Dakotas

June 27, 2012

Success Story:Credit Unions Are Recovering

Positive Trends in Federally Insured Credit Unions2009 - 2012

12/31/2009 12/31/2010 3/31/2012

Return on Assets

Net Worth

Delinquencies

Net Charge-Offs

Members

0.18 %

9.92 %

1.84 %

1.21 %

89.92 Million

0.50 %

10.08 %

1.76 %

1.13 %

90.49 Million

0.84 %

10.01 %

1.44 %

0.78 %

92.52 Million1

Credit Union Assets by CAMEL Codes

2

12/31/2009 12/31/2010 3/31/2012

Return on Assets

Net Worth

Delinquencies

Net Charge-Offs

Members

0.59 %

11.30 %

1.50 %

0.96 %

1.73 Million

0.62 %

11.14 %

1.45 %

0.80 %

1.71 Million

0.93 %

10.80 %

1.24 %

0.61 %

1.76 Million

South Dakota CU TrendsPositive Trends in South Dakota Credit Unions

2009 - 2012

3

Key Indicators

Year-End 2009

Year-End 2010

1st Qtr. 2012South Dakota

1st Qtr. 2012USA

ROA 0.22% 0.20% 0.71% 0.84 %

Net Worth 9.33% 9.30% 9.17% 10.01 %

Delinquency 1.14% 1.11% 0.84% 1.44 %

Charge-Offs 0.41% 0.42% 0.25% 0.78 %

Members 240,864 242,692 247,138 92.52 Million

12/31/2009 12/31/2010 3/31/2012

Return on Assets

Net Worth

Delinquencies

Net Charge-Offs

Members

- 0.26 %

9.47 %

3.09 %

2.11 %

4.56 Million

0.09 %

9.69 %

3.17 %

2.14 %

4.53 Million

0.82 %

9.66 %

2.65 %

1.42 %

4.66 Million

North Dakota CU TrendsPositive Trends in North Dakota Credit Unions

2009 - 2012

4

Key Indicators

Year-End 2009

Year-End 2010

1st Qtr. 2012North Dakota

1st Qtr. 2012USA

ROA 0.82% 0.74% 1.09% 0.84 %

Net Worth 10.72% 10.56% 10.13% 10.01 %

Delinquency 1.04% 0.79% 0.50% 1.44 %

Charge-Offs 0.26% 0.23% 0.07% 0.78 %

Members 201,428 202,181 205,777 92.52 Million

Streamlining Existing RegsTargeting New RegsMinimizing Reg Burdens

Regulatory Modernization

5

Reallocating NCUA Resources Past allocations were based on # of CUs, rather than assets and risks

-5

10 15 20 25 30 35 40 45

Less than

$10M

$10 to $50M

$50 to $100M

$100 to $250M

$250 to $500M

$500M to $1B

$1 to $2.5B

$2.5 to $5B

Greater than $5B

Share of FICUs, Assets and Exam Hoursby Asset Size Credit Unions

Assets

Exam Hours

6

www.NCUA.gov

7

• Free monthly newsletter• News and analysis you won’t

find anywhere else:– “Plain-English” summaries

of every open NCUA Board action

– Monthly columns by all 3 NCUA Board Members

– Rotating columns by each NCUA Regional Director and key Office Directors

• Learn not just the “what” – but also the “why” – behind NCUA initiatives.

• Click “NCUA Newsletter” when you sign up for NCUA Express!

8

What Credit Unions Need to DoDue DiligenceBoard TrainingStrategic PlanningAsk Questions…

11

Attract Younger Members

11

Offer New Technology

12

What We Can Do TogetherLegislation: Member Business Lending Supplemental Capital

12

Communication

At NCUA: We Hear You!

13

Listening Session Dates

Times Locations NCUA Regions

May 2 1:00-4:00 EDT Boston 1

May 9 1:00-4:00 EDT Alexandria 2

June 5 1:00-4:00 CDT St. Louis 4

June 13 1:00-4:00 EDT Orlando 3

July 10 1:00-4:00 PDT San Diego 2

July 31 1:00-4:00 MDT Denver 5

September [TBD] [TBD] Online Webinar Open to All14

The Long ViewNCUA Chairman Debbie Matz

Presentation toCredit Union Association of the Dakotas

June 27, 2012