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The NAFCU Board of Directors and NAFCU President and CEO Dan Berger Tuesday held a virtual meeting with Federal Reserve Board Governor Michelle Bowman to share insights into the credit union industry and trends coming out of the coronavirus pandemic. The meeting, which NAFCU has held annually with the Fed for almost three decades, coincides with the association's release of its Report on Credit Unions – now available for download.

NAFCU Board Chair Debra Schwartz, president and CEO of Mission Federal Credit Union in San Diego, Calif., provided an update on the credit union industry's current financial conditions. She highlighted the increase in deposits this year – resulting from government assistance and people's reduced spending in response to the pandemic – and trends in consumer lending. While credit cards have declined, the residential mortgage market has seen significant growth and forbearance requests have not been as significant as originally thought, which other board members also shared their perspective on.

NAFCU Board Secretary Brian Schools, president and CEO of Chartway Federal Credit Union in Virginia Beach, Va., touted credit unions' services to members, including how the industry has reached low-income and minority communities that have been abandoned by banks. He also noted difficulties in increasing fee income due to some stifling regulations and the need for a level playing field with fintech. Credit unions are prioritizing faster payments and technology, Schools said, but less regulation for non-traditional financial institutions is affecting competition in the market.

NAFCU Board Treasurer Gary Grinnell, president and CEO of Corning Federal Credit Union in Corning, N.Y., shared with Bowman NAFCU's advocacy priorities, which include growth, regulatory relief, a fair playing field, transparency and accountability from regulators, and a strong, independent NCUA. Under regulatory relief, Grinnell cited the Fed's removal of the Regulation D transaction limit as a positive, and also asked for additional relief and clarity related to Regulation CC and availability of funds.

NAFCU Board Vice Chair Tom DeWitt, president and CEO of State Farm Federal Credit Union in Bloomington, Ill., led the discussion on credit unions' response to the pandemic. DeWitt highlighted credit unions' innovations to allow staff to work remotely and still provide services and assistance to members, including member relief programs to those suffering financial hardships. DeWitt touted credit unions' participation in the Small Business Administration's (SBA) paycheck protection program (PPP), noting findings from a NAFCU survey that showed a majority of credit union respondents provided loans to borrowers who were turned away from other lenders. He also discussed the surge in share growth and efforts to support liquidity through lending facilities.

Several other NAFCU Board members provided anecdotes of what they're seeing in their respective communities as it relates to small businesses and struggling industries and what further relief could be needed to help these businesses survive the pandemic.

NAFCU Board Members Karen Harbin, president and CEO of Commonwealth Credit Union in Frankfurt, Ky., Melanie Kennedy, president and CEO of Southwest Financial Federal Credit Union in Dallas, Texas, James Kenyon, president and CEO of Whitefish Credit Union in Whitefish, Mont., Lonnie Nicholson, president and CEO of EECU in Fort Worth, Texas, Jan Roche, president and CEO of State Department Federal Credit Union in Alexandria, Va., Lisa Schlehuber, CEO of Elements Financial Federal Credit Union in Indianapolis, Ind., and Keith Sultemeier, president and CEO of Kinecta Federal Credit Union in Manhattan Beach, Calif., participated in the discussion.

Senior NAFCU staff, including Chief Economist and Vice President of Research Curt Long, and Federal Reserve staff also attended Tuesday's meeting.