June 20, 2011 – The National Credit Union Share Insurance Fund ended the month of May at a level equal to 1.29 percent of insured shares as it made a small contribution to its provision for losses, which continue to hover around $1.2 billion.
Of that provision – to which $5 million was added in May – about $1.05 billion is unallocated to any specific cases.
The number of CAMEL code 4 and 5 credit unions rose by three in May to 377, and the number of code 3 credit unions declined by the same number, to 1,791. Total shares held by the code 3, 4 and 5 credit unions declined by $2 billion. Code 4 and 5 credit unions held 4.75 percent of total insured shares, or $36 billion; code 3 credit unions held 17.13 percent of insured shares, or $129.8 billion.
There were 10 failures of insured credit unions from January through May. Of these, nine involved involuntary liquidation, and five of those were handled through purchase-and-assumption transactions. Total cost to the fund for these 10 failures is $39 million.
For the year, the fund has budgeted for $650 million in insurance loss expense. Last year's total was $749.1 million.