1. Committed to Community Development Presentation to National Federation of Community Development Credit Unions Baltimore, Maryland June 7, 2013 Debbie Matz, Board Chairman National Credit Union Administration

2. Committed to Community Development CDCUs Are Vitally Important! People of Modest Means Low-Income Communities The Credit Union Community Community Development Credit Unions serve: 1

3. Committed to Community Development Small Credit Unions Are Disappearing Number of Credit Unions by Asset Group 2

4. Committed to Community Development Mergers Are Rising Again 3 More than 91% of Mergers are Voluntary

5. Committed to Community Development Unprofitable Credit Unions More than 34% of Small CUs were Unprofitable in 2012 4

6. Committed to Community Development 5

7. Small Credit Unions Struggling; Low-Income Credit Unions Surging Key Credit Union Ratios (as of Year-End 2012) Year-End 2009Year-End 2010 3 RD Qtr. 2012 FICUs under $50 Million Low-Income Credit Unions All Credit Unions Return on Assets + 0.23 %+ 0.76 %+ 0.86 % Net Worth 12.44 %10.62 %10.44 % Loan Growth - 6.54 %+ 6.08 %+ 4.59 % Loan Delinquencies 1.61 %1.31 %1.16 % Net Charge-offs 0.58 %0.66 %0.73 % Membership Growth - 6.86 %+ 2.49 %+ 2.18 % 6

8. Committed to Community Development Credit Union Exam Hours vs. Losses 7

9. Committed to Community Development New Office of National Examinations and Supervision Reallocating NCUA Resources Shifts in allocations based on assets and risks 8

10. Committed to Community Development Streamlining Small CU Exams Eligibility: FCUs with assets up to $50 Million Draft scope and procedures target main risks: Fraud, Record-keeping, Lending Core transaction testing for all small CUs – More in-depth, “triggered” levels of review, based on core results 2013: Transition Period 2014: Training and Implementation 2015: Full Adoption 9

11. Committed to Community Development NCUA’s Commitment to CDCUs Shorter Examinations Examiner Guidance Regulatory Relief Low-Income Designation Initiative Office of Small Credit Union Initiatives 10

12. Committed to Community Development 11

13. Committed to Community Development Building Your Future Internal Controls Strategic Planning Due Diligence 12

14. Committed to Community Development Contacting the Office of the Chairman Chairman:Debbie Matz dmatz@ncua.gov Chief of Staff:Steve Bosack sbosack@ncua.gov Senior Advisor:Buddy Gill bgill@ncua.gov Asst./Scheduler:Angela Sanders asanders@ncua.gov Phone:703-518-6301 Feel free to contact our office with questions or comments. 13