Newsroom

The National Credit Union Share Insurance Fund (NCUSIF) ended September with an equity ratio of 1.25 percent, staff told NCUA's board during Thursday's open meeting. It also recorded a net loss of $74.6 million in the third quarter of 2017, which the NCUA attributed mainly to provision for insurance loss expense.

The board voted last month to close the Temporary Corporate Credit Union Stabilization Fund (TCCUSF) and merge its assets with the NCUSIF, though the merger's impact will not be reflected in the NCUSIF financials until the next reporting period.

NCUA Chief Financial Officer Rendell Jones delivered the quarterly update on the NCUSIF yesterday, reporting that the fund's assets increased by $475 million to $13.7 billion as a result of billing capitalization deposit adjustments for credit unions with assets greater than $50 million.

The fund had $286 million in reserves as of Sept. 30, which is up from $208.2 million in June. Of that amount, $20.1 million is allocated to specific cases and the remaining $265.9 million is for general reserves. So far, four insured credit unions have failed this year at a cost to the share insurance fund of $3.9 million. In 2016, 14 credit unions failed at a cost to the fund of $8.6 million.

According to the preliminary figures, the fund's third-quarter operating expenses slightly outweighed its investment and other income $51.1 million to $50.8 million. The NCUSIF's third-quarter report also showed a slight decrease in the number of problem credit unions from the second quarter to the third quarter, with the number of credit unions with a 4 or 5 CAMEL code declining by six to a total of 204. These 204 institutions held 0.84 percent of total NCUSIF-insured shares.