Home Info Operations Resources

Operations Resources


Benefits of Credit Union Membership
The Credit Union National Association's (CUNA) state-by-state report on the financial benefits of credit union membership.

Regulatory Burden Study
With the support of state credit union Leagues, CUNA commissioned Cornerstone Advisors to perform an updated rigorous analysis of the current financial impact of regulation on credit unions, and how much it has changed over the last several years. The study found that the combined effect of increased costs and reduced revenues due to regulation amounted to at least $6.1 billion in financial impact to credit unions, including $614 million in Virginia. 

Credit Union Profile
Your League's quarterly report on the credit union system and its financial performance, with detailed report on the Commonwealth's credit unions.

CUNA’s Economic Update
CUNA Economic Update videos provide 15-minute monthly overviews of the economy and its impact on credit unions. 

CUNA's Environmental Scan
CUNA E-Scan combines trends across industries, expert analysis and forecasting data to provide strategic planning guidance for credit union professionals. The insights in CUNA E-Scan are organized into 10 trend-based chapters that provide actionable insights from industry experts and practitioners, so you can make timely, future-focused decisions that keep your credit union agile and ready to meet member needs. 

CUNA Mutual Group’s Credit Union Trends Report
The Credit Union Trends Report is a monthly "pulse check" on the state of the credit union marketplace, often placed in a historical context.

NCUA's Credit Union Analysis
NCUA’s economists and analysts spotlight the credit union system’s financial performance, merger activity, changes in credit union chartering and fields-of-membership, as well as broader economic trends you should track.

 

Life After COVID-19; Proactive Loss Mitigation Strategies for Your Loan Portfolio
When thinking about the COVID-19 impact, look how credit union business adapted and shifted to meet the needs of employees and members. Consider the risks that credit unions also faced and continue to face under this “new normal." One significant risk, for example, is how the inherent risk of your loan portfolio - the largest earning asset of your credit union - has increased dramatically.

Meeting Members Where They Are: What Consumer Sentiment Data Tells Us About How to Serve Members
As we grapple with the ever-changing nature of the pandemic and the roller-coaster of information, it’s important that we pause and do our best to understand how consumer sentiment is also evolving. Doing so will help us best serve the members who need us more now than ever.

Business Changes Introduce New Robbery and Physical Security Threats (June 2020)
An increase in robberies across the country have occurred at drive-thru lanes, through ATM attacks, and within lobbies. In some instances, these acts are being conducted by criminals wearing masks - taking advantage of the use of face coverings by the general public to help reduce the spread of the Coronavirus. The increase in crime is likely due to difficult financial times and the additional opportunity to change the modus operandi with changes in credit union business operations.

Counterfeit Checks Fraud Alert - (June 2020)
Counterfeit cashier's checks and/or corporate checks that closely resemble credit union authentic checks have been presented for payment at financial institutions in connection with scams. Slight alterations in check color, check stock, logo, or location of key credit union check branding elements have been reported. In many cases, Routing & Transit Number (RTN) and MICR information are accurate.

Civil Unrest & Riot Preparedness: An Essential Component of Safety
After a tumultuous beginning of 2020 with the COVID-19 pandemic, growing concerns over civil unrest manifesting into riots are alarming many credit unions. While having other types of safety processes and procedures in place are fairly common, many credit unions have not always accounted for or trained their employees on what to do in the event of a riot.

Sophisticated Social Engineering Scams Lead to P2P Fraud
Fraudsters are launching social engineering attacks to members by posing as the credit union to obtain online banking credentials. They are defeating out-of-band / 2-step authentication by scamming the member into providing this passcode to them. Once they have the passcode, they login to the member’s account and use peer-to-peer (P2P) services, such as Zelle and Payzur, to transfer funds elsewhere. Credit unions have reported losses ranging from $30,000 to $2 million due to this fraudulent activity.

Establishing Risk Tolerance in the Face of COVID-19 Ambiguity (May 2020)
As more of the COVID-19 impact and various government models for support have come into view, credit unions can allocate more time to strategic thinking around their plans for community support. With both snapshot and trending data, as well as qualitative insights from members and employees, leaders have more of the intelligence they need to establish an adjusted risk tolerance.

The Great Data Demand Facing Credit Union CFOs (May 2020)
As the number of business units demanding data-driven guidance grows, so too does the CFO’s need for highly consumable, real-time and accurate financial performance data.

Recent Ransomware Attack Validates Growing Trend Targeting Vendors
A major provider of automatic teller machines (ATMs) and payment technology, Diebold Nexdorf, recently suffered a ransomware attack that disrupted some corporate operations and services for over 100 of the company’s customers. While Diebold has determined that the spread of the malware has been contained, the attack validates a growing trend of third-party vendors being aggressively targeted by cybercriminals deploying ransomware in 2019, according to Beazley Breach Solutions.

Fraudsters Use Stolen Identities to File for Unemployment Benefits
Fraudsters from an international fraud ring have been using stolen identities to file for unemployment benefits in several states according to the Secret Service. The fraud network is believed to consist of hundreds of money mules creating potential losses in the hundreds of millions of dollars. Several credit unions have reported that members are receiving ACH deposits representing unemployment benefits –possibly after being recruited as money mules.

Data Privacy and Credit Unions: What to Expect in 2020 (February 2020)
In a changing digital world, many consumers continually weigh convenience and customized experiences with the privacy of their personal information. Consumers become accustomed to perks like scanning their loyalty card for an extra five dollars off. Simultaneously, they demand increased protection of their personal information and transparency over how the information is used. While today’s data privacy concerns generally target tech companies, these consumer calls may also impact credit unions where strict data privacy laws already drive action.

Credits Unions Use CDAs to Boost 'Cause Marketing' Partnership With CU4Kids (January 2020)
CUNA Mutual Group—in addition to its corporate and employee donations to CU4Kids—has been introducing credit unions to a relatively new funding mechanism, the “charitable donation account” (CDA). The NCUA allows certain investments within a CDA that have the potential to earn higher returns, with additional risks, than certificates of deposit and other typical credit union investments. CUNA Mutual Group helps credit unions analyze the different risks these investments present, and closely track the CDA’s performance.

 

 

Independence Day 2020 (July 3 observed) Independence Day Closing Sign
Labor Day 2020 (September 7) Labor Day 2020 Closing Sign

 

 

 

Effective July 1, 2020 changes to the Code of Virginia will allow a state-chartered credit union to compensate members of the board of directors.  While state law previously permitted compensating members of supervisory and credit committees, the bylaws of most credit unions prohibited the practice.  Compensation of credit union officials requires that the board of directors adopt written policies, provided that annual compensation for an individual member does not exceed $6,000.  Compensation is permissible, not required, and credit unions choosing to provide compensation will need to amend their bylaws accordingly.  We have updated the standard bylaw template to reflect this option.

As you may know, the National Credit Union Administration issued a revised set of federal standard bylaws effective January 2, 2020.  We have reviewed those changes and made a few additional edits to the Virginia document.  We do not believe these changes are substantive, but some credit unions may find them relevant to their operations. Please note that the indemnification provision in Article XVII will only provide the maximum protection from liability if adopted by the members at an annual meeting (it is acceptable to present only Article XVII subject to member vote).

Credit unions may adopt bylaw amendments as provided in the articles of incorporation and bylaws of the institution.  A copy of the amended bylaws should be sent to the Commission for their records.  You are reminded that credit unions must continue to submit bylaw changes regarding field-of-membership (Article II) to the Commissioner for approval.  Additionally, any changes to a credit union’s Articles of Incorporation still require submission to the clerk’s office of the State Corporation Commission.  For example, Article I (Name) would require approval of the State Corporation Commission as it would be a change to the Articles of a Virginia non-stock corporation.

As a legal matter, a credit union’s bylaws must conform to, and cannot be inconsistent with, any provision of its charter, Code of Virginia Title 6.2 Chapter 13, or other laws or regulations applicable to the credit union’s operations.  A general review of the standard bylaws has been performed by the League’s counsel, Hunton Andrews Kurth.  However, you should consult your attorney when in doubt.

Download Bylaws

 

View the Virginia Code (new law effective July 1, 2020)

The Virginia Credit Union League provides the following basic recommendations for a credit union’s Board of Directors to consider when implementing a Compensation Policy for their credit union officials.  The League makes no warranty as to the sufficiency of these guidelines as each credit union is responsible for adopting policies consistent with their governance practices.

Purpose:  This policy details how directors (and/or committee members) are compensated for their contributions to the credit union.

Compensation philosophy: (Name of credit union) board of directors bears ultimate fiduciary responsibility for the credit union, protecting members’ interests and financial assets.  To attract and retain the best officials (directors, committee members) possible, the board sets compensation at a rate to reflect the level of risk and responsibility taken, the professional expertise required and within the limits prescribed by the Code of Virginia.

Organizational relationship: Directors and committee members are defined by statute as non-employees.  Pay to attend official credit union meetings or any compensation otherwise associated with performing duties required of the elected or appointed positions does not create an employee relationship.  If paid, credit union officials are treated as independent contractors.  Compensation will be reported as required by IRS on Form 1099-MISC.

Compensation structure: The credit union should develop their methodology for structuring the compensation of officials using one or more (or a combination thereof) of the options below.  In no case should the total annual compensation for an individual member of the board or committee exceed $6,000 (current limit under state law – credit unions may establish a lower threshold).

  1. Officials may be paid a flat-fee annual retainer that compensates them for the meetings they attend (regardless of number and format, whether in-person, conference call, or virtual).
  2. Officials may be compensated based upon their positions.  For example, the Board Chairperson or a Committee Chair may be compensated at a higher level.  Additionally, compensation of board and committee members are independent decisions (i.e. a credit union is not obligated to pay all officials).
  3. Officials may be paid on a per meeting basis (attendance may be mandatory to receive the allotted compensation).

Payment of Compensation: The credit union should establish when officials are to be paid (ex. monthly, quarterly, semi-annual, annual) and establish a system of recordkeeping.

Disclosure of Compensation: The credit union will report compensation to officials as directed by state and federal law.  (The Board may adopt additional reporting requirements if desired.  Ex. Membership at the credit union’s annual meeting).

Related Policies: Health, accident, and term life insurance protection (if offered) for a director or committee member shall not be considered compensation.  Directors and committee members, while on official business of the credit union, may be reimbursed for expenses consistent with Internal Revenue Service guidelines and such reimbursement will not count as compensation under this policy.

General Conditions: The Board of Directors will safeguard against payment of compensation that is excessive or could lead to material financial loss to the credit union.  If the credit union falls below the required regulatory capital minimum, compensation to officials will be eliminated.

Authority: Compensation of officials is at the sole discretion of the Board of Directors.  This policy does not convey an obligation or contract for payment.  The Board may amend, suspend, or rescind this policy at any time without prior notice to any official. The board will not be discriminatory in its compensation practices.

 

Diversity Equity Inclusion Resources

 

Go to main navigation