NEBRASKA DEPARTMENT OF BANKING AND FINANCE Nebraska Credit

NEBRASKA DEPARTMENT OF BANKING AND FINANCE Nebraska Credit Union League

State Vision Grow Nebraska

State of Nebraska Mission To Create Opportunity Through More Efficient and Effective, Customer. Focused State Government

Department of Banking and Finance Vision To Make Nebraska the Most Trusted Financial Home for People and Businesses

Department of Banking and Finance Mission To Maintain the Public Confidence in the Financial Industries of the State of Nebraska

LB 375 • Passed on Final Reading 47 -0 -2 May 8, 2017 – Updated Definition of: • Financial Institution and Fixed Asset – Updated CU Application Process – Supervisory Committee Responsibilities – Jointly Owned Property & Asset Purchases – Joint Account Establishment

Kelly Lammers NDBF CONTACT information 402 -471 -2171 Ask for Patrina, Kent or Kelly

ndbf. Nebraska. gov

Exam Turnaround • NRS: 21 -1736(2) – Examinations – (2) The department shall forward a report of the examination to the chairperson of the board of directors within ninety calendar days after completion. • 2017 Target = 30 days or less • Past year majority of exams returned in less than 20 days

18 Month Exam Cycle • NRS: 21 -1736(1) – Examinations • (1) The director shall examine or cause to be examined each credit union as often as deemed necessary. • 18 month exam cycle is working – anticipate no NDBF change

Camel(s)- Sensitivity to Market Risk • Sixteen States- rating S • L and S rating different in two exams • Information to assist your managers – Liquidity – availability to funding – Sensitivity – matching of funding

Loan Officers License. NRS – 21 -1770 Legislative Change • Opt Out Provision – August 2017 • Opt Out Removes the NDBF Background Review – Also Removes the Application Process – Annual Renewal

Patrina Herring • Small Credit Union Examination Program

What is the Small Credit Union Examination Program? • Improved Efficiency of Department Resources • Streamline Examination Process • Defined Scope

Why Is NDBF Making these Changes? • Modernize the examination process • Improve Transparency • Recognize One Size Does Not Fit All for Small Credit Unions

Who is Eligible for the Small Credit Union Examination Program? • Total Assets < $50 Million • Prior Composite Rating of 1 or 2

How Does the New Exam Differ from a Traditional Exam? • Time Spent Onsite by the Exam Team • Define Scope in the following areas; Lending Recordkeeping Internal Controls Internal Audit Function

What is the Same? • Examination Time Commensurate with Credit Union Size, Structure and Risk Profile. • Emphasis on improved communication with management • Focus on issues and risks relevant to the credit union • Customized examination reports • Additional supervision where appropriate

Nebraska Credit Unions Questions? Phone # 402 -471 -2171 ndbf. Nebraska. gov Patrina / Kent / Kelly or Mark