Get the Latest Texas Credit Union Commission Meeting Results

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On Nov. 8, 2024, the Texas Credit Union Commission met at the Texas Credit Union Department in Austin. Below is a summary of the meeting.

• Ratification of Actions Taken at the 10/25/24 Special Meeting
• On 10/25/24, the Commission held a special meeting to discuss the recommendations of the State Office of Administrative Hearings (SOAH) regarding the matter of Cooperative Teachers Credit Union’s application to expand the field of membership.
• The Commission ratified the action taken at the October meeting to remand the administrative law judge's recommendation to the Commissioner for consideration and issuance of a Final Order on the application of Cooperative Teachers Credit Union.
  
• Commissioner Evaluation Committee Report
• The Commission met in private to discuss the Commissioner’s performance review.
• The Commissioner’s salary was set at $217,360 effective 01/01/25.
  
• TCUD Fiscal Year 2024 Budget and Financial Performance
• No action taken.
• In 2022, the Commission adopted a strategic plan for Fiscal Years 2023–2027. The $5.6 million FY 2024 Budget approved by the Commission in August 2023 includes the maintenance and operating budget and capital improvement budget in support of the Strategic Plan.
• At the end of August 2024, total expenditures were $518,477 or approximately 9.5% less than budgeted projections. The primary expense categories below budget estimates include personnel expenses ($298,379), Professional Services and Fees ($148,925), and travel expenses ($89,591).

• Status of the State Credit Union System
• No Action Taken.
• The financial performance of Texas credit unions for the first six months of 2024 has declined slightly but remains sound overall. Although average net worth ratios for Texas charters are at an all-time high of 11.44%, several other key financial trends have weakened. Specifically, loan delinquencies and losses have increased over the last 12 months and are at the highest level in seven years. Also, the Return on Average Assets Ratio (ROAA), a measurement of earnings performance, has declined to 0.54% and is only one-half the ROAA recognized by Texas credit unions at year-end 2021. The rapid decline in earnings trends is primarily attributed to a rapid increase in loan funding costs tied to higher rates on deposits and borrowings, increased loan losses, and a rise in total operating costs. It is important to note that the deterioration in financial trends has slowed, and with recent and expected interest rate reductions by the Fed, it is anticipated that most financial performance trends will improve in 2025.
• While there has been a consistent increase in capital ratios for several years, economic trends have hindered credit unions' financial performance for the last two years. The Department continues to work with operating management and the officials of Texas credit unions to address unfavorable operating performance trends. Overall, it remains essential for credit unions to proactively monitor and adapt to key economic and operational developments to safeguard the financial interests of their members.

• Rule-making Matters
• The Commission adopted the proposed changes to 7 TAC, Part 8, §151.1 concerning home equity lending.
• 7 TAC §151.1(d) describes the requirements for formally requesting a home equity interpretation. Adopted amendments to §151.1(d)(1) specify that any petition for the Finance Commission to issue a home equity interpretation must be sent to the Department of Savings and Mortgage Lending, replacing current language that refers to the Office of Consumer Credit Commissioner.
• The Department of Savings and Mortgage Lending is primarily responsible for licensing and regulating companies providing mortgage loans in Texas. The agencies anticipate that the Department of Savings and Mortgage Lending will take a leading role in coordinating future home equity interpretations.
  
  
• Future Commission Meetings: Agenda Items, Arrangements, and Dates
• The next regular meeting of the Commission is scheduled for March 21, 2025.

Questions?

Email Suzanne Yashewski, regulatory compliance counsel, Cornerstone League at [email protected].