NCUA’s Minority Depository Institutions Designated CUs Statistics
in Compliance & Regulatory
By: Nicola Foggie, NJCUL Senior Vice President, Compliance and Regulatory Affairs

There were 529 federally insured credit unions that were designated as minority depository institutions (MDIs) at the end of 2018, according to the National Credit Union Administration (NCUA). To be designated as a MDI, a credit union must affirm that more than 50 percent of its current members, eligible potential members, and board of directors are from one of the four minority categories specified under Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act. Thirty-seven states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands reported having MDIs. The states with the most MDIs were Texas, California, New York, Hawaii, Illinois, and Louisiana.In aggregate, MDIs serve 3.9 million members and manage $38.5 billion in assets. Texas, by far, has the highest number of members with more than 1.5 million followed by Hawaii, California, Maryland, and New Mexico. Hawaii, California, Maryland, New Mexico, the District of Columbia, and North Carolina, each have more-than $1 billion in aggregate MDI assets. According to NCUA, the agency during 2018 approved the chartering and field of membership expansions for 28 MDIs. Also during 2018, 21 MDIs merged into other credit unions with five of the continuing credit unions being MDIs.

The Office of Credit Union Resources and Expansion (CURE) oversees the Minority Depository Institution Preservation Program. This program devotes additional efforts toward preserving and promoting eligible minority credit unions as prescribed by Section 367 of the Dodd-Frank Wall Street Reform and Consumer Protection Act. The program offers merger partner preference to minority depository institutions (whenever feasible), technical assistance, training, education programs, mentoring, chartering assistance and other resources to help minority depository institutions flourish. To learn more about the program, please review the final Minority Depository Institution Preservation Program Interpretive Ruling and Policy Statement 13-1.

A credit union needs to self-designate as meeting the minority depository definition by answering minority questions within the Credit Union Online Profile system. To qualify as a minority depository institution in the policy statement, a federally insured credit union’s percentage of potential minority members, current minority members and minority board members must each exceed 50 percent. A “minority” is defined as any “Black American, Asian American, Hispanic American, or Native American” as defined in Section 308 of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989.

You can access sources of data relevant to self-certifying as a minority depository institution at:

U.S Census
FFIEC – Online Census Data 
Other FFIEC

A list of minority depository institutions is available here.

Need Compliance Help? Contact Nicola Foggie at nfoggie@njcul.org.