NCUA’s MDI Report to Congress Shows Strong Growth
At the same time, the number of MDI credit unions dropped between 2021 and 2022, the agency reports.
In its annual report to Congress, NCUA officials released the most recent data Wednesday concerning the minority depository institution (MDI) credit unions in the country. The report found, overall, a period of “growth in membership, assets and loans in 2022” in which MDIs helped expand financial services to members and communities.
According to the report, the number of MDIs supervised by the NCUA dropped to 503 in 2022 from 509 in 2021. The decrease, according to the NCUA, was “largely due to mergers” or “credit unions no longer self-designating as MDIs.”
Highlights from the report showcased the following:
- MDIs served more than five million members, up from 2021’s 4.5 million.
- MDIs had $42.2 billion in loans outstanding compared to $34.2 billion in 2021.
- Total assets for MDIs grew from $58.9 billion in 2021 to $64.7 billion in 2022.
In a statement, NCUA Chairman Todd Harper said, “Minority depository institutions are an essential component of the credit union system, providing access to safe, fair and affordable financial products and services within under-resourced communities. MDIs during 2022 showed us just how essential they are. Not only did they give millions of Americans the chance to build better and more secure financial futures, their performance metrics in several categories were stronger than the credit union system overall.”
The report showcased the NCUA’s MDI Preservation Program, which supports MDI credit unions through grant access from the Community Development Revolving Loan Fund as well as providing training and technical assistance to MDIs.
According to the NCUA, its MDI preservation efforts in 2022 included:
- Chartered two new MDI credit unions: WeDevelopment Federal Credit Union in Kansas City, Mo., and People Trust Federal Credit Union in North Little Rock, Ark.
- Launched the Small Credit Union and MDI Support Program, which directed agency resources to the needs of MDI credit unions. The NCUA dedicated 1,534 staff hours per region to this effort, and 136 MDI credit unions participated.
- Approved field-of-membership expansions for 26 MDIs, allowing them to add 833 new member groups or geographic areas and more than 7.7 million potential members.
- Provided 16 MDI credit unions with approximately $270,000 in technical assistance grants.
- Awarded $25,000 mentoring grants to two credit unions under the agency’s MDI mentoring program to help them obtain technical and other assistance from stronger, more experienced institutions.
- Continued the MDI Mentoring Cohort, which provided technical assistance, networking and training to mentoring grant recipients.