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NCUA says Code 3, 4 and 5 CUs hold a smaller percentage of total insured shares than they did in 2011. - NAFCU photo

Feb. 22, 2013 – The National Credit Union Share Insurance Fund closed 2012 at a level equal to 1.3 percent of insured shares, even in the face of rising share growth, Mary Ann Woodson told the NCUA Board Thursday.

Woodson, NCUA's chief financial officer, said the fund's net position improved 4.6 percent in 2012 to $11.3 billion. That's up from $10.8 billion at year-end 2011.

The total number of CAMEL 3, 4 and 5 credit unions declined 9.8 percent in 2012, totaling 1,940. That's down from 2,150 at year-end 2011. Also as of Dec. 31:

• Code 3 credit unions had a total of $119.3 billion in assets, down 16.3 percent from the previous year.
• Code 3 credit unions held $105.9 billion in insured shares, or 12.62 percent of the total, down from 15.9 percent in 2011.
• Code 4 and 5 credit unions had $19 billion in assets, down 35.4 percent from the previous year.
• Code 4 and 5 credit unions held $16.9 billion in insured shares, or 2.02 percent of the total, at the end of 2012, down from 3.31 percent in 2011.

There was no insurance premium assessment in 2012. The estimated range for a 2013 assessment is from 0 to 5 basis points.

Woodson said the Temporary Corporate Credit Union Stabilization Fund improved its net position in 2012 by nearly $1.8 billion. It had $5.1 billion in outstanding borrowings with Treasury on Dec. 31.

NCUA transferred $88.1 million from the NCUSIF to the stabilization fund last year to keep the NCUSIF down to its statutory cap, 1.3 percent. Woodson said the transfer will be taken into consideration when NCUA decides on any stabilization assessment for this July.The transfer from the NCUSIF will reduce future cash needs of the stabilization fund. Those needs are met, in part, through assessments on insured credit unions.

NCUA has projected a stabilization assessment in the range of 8 to 11 basis points for 2013.