ALEXANDRIA, Va.–While overshadowed by discussion of the NCUA budget, during the NCUA board meeting an update on the National Credit Union Share Insurance Fund was also provided.
According to NCUA, the second quarter of 2015 saw continued stable trends in income and operating expenses for the Share Insurance Fund, due to continued improvement in the performance of federally insured credit unions.
The Share Insurance Fund ended the second quarter of 2015 with a net loss of $8.8 million and an equity ratio of 1.29%. The equity ratio is calculated on an estimated insured base of $935.6 billion and reflects the additional 1.0% capitalization deposit that will be billed in September.
Second-quarter investment and other income was $55.2 million. Operating expenses were $49.9 million. The provision for insurance losses increased by $14.1 million. Overall, the amount of assets in CAMEL codes 3, 4 and 5 credit unions has decreased 49% since reaching a high of $205.6 billion in September 2010, NCUA said.
The agency said the continuation of these positive trends and other factors contributed to a slight decrease of $400,000 in the Share Insurance Fund’s provision for insurance losses during the first two quarters of 2015.
For the second quarter of 2015, the Chief Financial Officer reported:
- The number of CAMEL code 4 and 5 credit unions declined 14.9% from the second quarter of 2014 to 251. More than half were credit unions with assets of $10 million or less.
- Assets of CAMEL code 4 and 5 credit unions were $11.4 billion, a 23.5% decline from the second quarter of 2014.
- The number of CAMEL code 3 credit unions declined 8.9% from the second quarter of 2014 to 1,336.
- Assets of CAMEL 3 credit unions were $94.1 billion, an 11.4% decline from the second quarter of 2014.
One federally insured credit union failed during the second quarter. The total losses associated with failures through the second quarter was $4.2 million.