75 CUs File Second Quarter Call Report Late

ALEXANDRIA, Va.—Despite NCUA handing out of $57,750 in penalties to late Q1 Call Report filers, 75 federally insured CUs have filed their Q2 report late, the agency reported Monday.

Four of the current late filers filed their Q1 Call Report late, as well.

As it did following that late Q1 filings, NCUA is reviewing the cases to determine whether any of the late filers have mitigating circumstances that warrant a waiver of penalties.

NCUA determined that 104 credit unions filed their first-quarter call reports late and 62 ended up receiving civil money penalties. NCUA expects to notify late filers in September of the penalties they face. Penalties are determined by three factors: size of the credit union, lateness in filing the Call Report and history of violations. The Federal Credit Union Act requires any penalties be sent to the U.S. Treasury.

While the review process is under way, NCUA will not share a list of Q2 late filing credit unions, the agency stated.

"The situation continues to improve, but we're not yet at full compliance, which is where we need to be," NCUA Board Chairman Debbie Matz said in a statement. "It is imperative that every credit union file its Call Report on time."

Of the collective $57,750 in penalties in Q1 filing penalties, individual obligations ranged from $150 to $20,000. The median fine was $243.

Small credit unions comprised the bulk of the Q1 late filers: 93 of the CUs that missed the April 25 deadline were credit unions with assets of less than $50 million: 64 have less than $10 million in assets, 29 between $10 to $50 million, 11 between $50 to $250 and none are above $250 million.

This round 84% of tardy filers (63) have assets below $50 million: eight are from $50 million to $250 million and four are above $250 million. Fifty-two (69.3%) were one to three days late, 18 (24%) were four to ten days late, and five (6.7%) were greater tare than 10 days late.

During the first round of penalties NCUA stated that a penalty is not final until a credit union has signed a consent order agreeing to pay a reduced penalty or an administrative judge has ruled in the NCUA's favor.

According to several CUs that filed their Q1 report late, NCUA sent letters to late filers describing the penalties the agency planned to assess and gave credit unions until close of business July 16 to submit an agreement of consent with the regulator or appeal the fine.

CUs stated that the agency generally cut the fine in half if they settled. According to the July issue of The NCUA Report, the agency also provided contact information for an NCUA program officer to listen to appeals from institutions that believe they have valid reasons for missing a deadline.

Of the 104 that filed their Q1 report t late, 85 had been on time the previous quarter. The 104 late filers represented an 80% drop from the 561 FCUs that submitted their fourth-quarter call reports late or made corrections after the Jan. 24 deadline.

Tardy CUs could be fined up to $1 million a day, NCUA has stated.