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NCUA staff told the NCUA Board Thursday that the 3-6 basis points share insurance premium estimated for 2017 would cost credit unions from $299.6 million to $599.2 million. NAFCU is urging the agency to keep any premium as small as possible.

Many credit unions would feel a bottom-line impact from the premium assessment: NCUA's baseline projections show 110 credit unions would have negative net income after a 3bps assessment; a 6bps assessment would push 219 credit unions into negative net income.

"NAFCU acknowledges that certain factors have resulted in a downward movement in the equity ratio for the share insurance fund recently. However, NAFCU urges NCUA to exercise caution in assessing a premium in 2017, only doing so if it is deemed absolutely necessary," said NAFCU President and CEO Dan Berger, who attended yesterday's open board meeting.

"Given the fact that NCUA is forecasting a 3-6 basis point premium for the share insurance fund next year, NAFCU urges the agency to redouble its efforts to refund monies to credit unions to offset any additional costs as soon as possible," continued Berger. "As for the corporate stabilization fund, NAFCU will continue to advocate for rebates to credit unions prior to 2021. We strongly encourage the agency to thoroughly examine and consider all options for doing so.

The last premium assessment for the share insurance fund was in 2010 and amounted to 12.42 basis points.

By statute, the agency is required to assess a premium if the equity ratio for the National Credit Union Share Insurance Fund falls below 1.2 percent. As of Sept. 30, the ratio stood at 1.27 percent.

The board on Thursday also approved a 2017 operating budget of $298.2 million, about $1 million below the projected $299.2 million, but an increase from this year's budget. Read more.