Operating Fee Schedule for FY 2011

Dear Board of Directors:

I am pleased to announce that for the second consecutive year, NCUA is reducing the operating fee scale for federal credit unions.

For natural person federal credit unions, the 2011 operating fee assessment rate is 2.86% lower than the 2010 rate. 

NCUA is able to reduce this cost by devoting an even greater percentage of agency resources toward protecting the National Credit Union Share Insurance Fund (NCUSIF).

In these challenging economic times, NCUA is refocusing on our primary safety and soundness mission, while doing everything in our power to keep costs to federally insured credit unions as low as possible. In fact, these two objectives go hand in hand: The more resources NCUA devotes to safety and soundness examinations, the more money credit unions can save through reduced losses – which also results in a lower NCUSIF premium.

Another factor that affects both your operating fee and your NCUSIF premium is determined entirely by credit unions: growth. Each year, the asset ranges between the dividing lines on the enclosed operating fee chart are adjusted by the same percentage as the projected federal credit union asset growth. In 2011, based on federal credit unions’ rate of growth, the asset ranges are increasing by 3.4%. You will see the new asset ranges to the right of the lower fee rates on the chart enclosed with this letter.

In March, you will receive an invoice for your 2011 operating fee and for any amounts needed to adjust your NCUSIF capitalization deposit to 1% of insured shares.

• Your operating fee will be based on assets you report as of December 31, 2010.
• Your capitalization deposit may adjust up or down based on the insured shares you report as of December 31, 2010.

Credit unions can exercise control over both of these growth rates. Knowing the factors involved, you can do your part to help keep these payments as reasonable as possible.

NCUA will combine your operating fee and your capitalization deposit adjustment into a
single payment that will be due by Friday, April 15, 2011.

If you have any questions regarding this letter, please contact NCUA’s Office of the Chief Financial Officer at (703) 518-6570 or ocfomail@ncua.gov.