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The NCUA at today's open board meeting estimated a 2017 share insurance premium assessment in the range of 3-6 basis points. The board 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.

"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 today's 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.

"The lengthy era of low interest rates has impacted the share insurance fund," added Berger. "Despite relatively few credit union failures, low rates and a gradual increase in share growth have combined to weigh on the equity ratio in recent years."

The board today also heard NCUSIF equity ratio projections. By statute, the agency is required to assess a premium if the equity ratio falls below 1.2 percent. As of September 2016, the equity ratio stood at 1.27 percent.

Also today, the NCUA Board approved its 2017 and 2018 budgets, each about $1 million less than projected at last month's open budget briefing. The 2017 budget was approved for $298.2 million; the 2018 budget was approved for $312.1 million.

"While NAFCU and our members appreciate that NCUA Board Chairman Rick Metsger and Board Member J. Mark McWatters listened to our concerns during last month's budget briefing, the budget approved today does not reflect a material change in spending efficiency," Berger said. "Every dollar credit unions send to support NCUA's budget is a dollar not being used serving their members. However, we welcome the $1 million decrease from budget projections as a first step, and we hope it signals a trend toward further budget discipline in years to come."

For the 2017 budget, NCUA will assess a total of $104.8 million in operating fees from federal credit unions. The remaining will be funded through the overhead transfer rate, and other miscellaneous sources. The 2017 OTR is 67.7 percent, down from this year's 73.1 percent.

Also during today's open board meeting:

• A final rule related to the Community Development Revolving Loan Fund was unanimously approved. In August, NAFCU expressed support for the proposed technical amendments to the CDRLF rule that aim to make the rule more succinct and transparent.
• The board also approved 10 recommendations from the agency's Exam Flexibility Initiative working group as part of the agency's budget discussions.