ALEXANDRIA, Va. –NCUA announced it will pay out $160.1 million to more than 5,500 institutions credit unions eligible for a distribution from the National Credit Union Share Insurance Fund distribution.
Statements were mailed to dividend recipients indicating the amounts they will receive. An institution that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in calendar year 2018 will be eligible forthis pro rata distribution, according to the agency.
As CUToday.info reported earlier, the NCUA board approved a $160.1 million dividend in Marchafter the Share Insurance Fund reported an equity ratio of 1.39% at the end of 2018. That ratio was above the Board-approvednormal operating level of 1.38 percent, triggering a distribution under the Federal Credit Union Act and NCUA’s rules and regulations, NCUA stated.
“Prudent actions by the NCUA Board and the agency’s successful stewardship of the Share Insurance Fund made this distribution possible,” NCUA Board Chairman Rodney E. Hood said. “I’m delighted the NCUA has been able to issue nearly $900 million in equity distributions over the past year — money that is going back into communities to support small businesses, promote economic growth, and improve the financial well-being of credit union members across the country.”
This is the second equity distribution since the closure of the Temporary Corporate Credit Union Stabilization Fund and the transfer of its assets to the Share Insurance Fund in October 2017. At that time $736-million was returned to credit unions.
In a statement, NCUA said it will continue to monitor the health and risk exposure of the Share Insurance Fund, and will evaluate the normal operating level annually to determine its appropriate level, based on an analysis of data and trends.
Information on the Share Insurance Fund distribution, including the method the NCUA used to determine each institution’s share, can be found here.