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NCUA's independent auditor issued clean audit opinions for 2016 for the agency's operating fund, National Credit Union Share Insurance Fund, Central Liquidity Facility and Community Development Revolving Loan Fund.

The audited financial reports for the four permanent funds were released Thursday by NCUA's inspector general office. The auditing firm, KPMG LLP, is expected to release an opinion on the 2016 financial statements for the Temporary Corporate Credit Union Stabilization Fund by Feb. 28, the agency said.

The audit report for the NCUSIF notes that the total reserves for both identified and anticipated losses resulting from insured credit union failures totaled $196.6 million on Dec. 31, 2016, up from $164.9 million as of Dec. 31, 2015. However, specific reserves related to credit unions considered to be at imminent risk of failure declined from $10 million at the end of 2015 to $2.9 million in 2016.

"We congratulate the NCUA for the clean audit received for 2016 on its four permanent funds," said NAFCU Chief Economist and Director of Research Curt Long. "NAFCU will continue to monitor the health of the NCUSIF and work with the agency to ensure that measures are taken to avoid unnecessary premium charges," he added.

The report also finds that the equity ratio for NCUSIF was 1.24 percent as of Dec. 31, 2016, compared with 1.26 percent in 2015. However, Long noted that once credit unions are invoiced for their capitalization deposit adjustments next month, the equity ratio should be approximately 1.26 percent.

Insured shares grew to $1 trillion from $961.3 billion last year. Also in 2016, total assets in CAMEL code 4 and 5 credit unions increased to $9.7 billion, up from $8.6 billion in 2015.