2018 NCUSIF Distribution
The Temporary Corporate Credit Union Stabilization Fund (TCCUSF) closed on October 1, 2017, and all funds, property, and other assets and liabilities were distributed to the NCUSIF. As of December 2017, the NCUSIF's equity rate was above the then-current NOL of 1.39 percent. As a result, credit unions began receiving $735.7 million in distributions from the NCUSIF beginning July 2018. This distribution amounts to credit unions receiving a refund of about 15 percent of their original assessments made to the TCCUSF. Additional distributions are possible in the future due to the remaining obligations of the Corporate System Resolution Program that are held in the NCUSIF that mature in 2020. The NCUA has estimated these additional distributions to be from $600 million to $1.1 billion in total possible from 2019 through 2022; however, all future distributions are affected by economic downturns, increases in insurance losses, and the equity ratio. We will continue to fight for our members on this issue and push for future rebates for credit unions.
2019 NCUSIF Distribution
During its December 2018 meeting, the NCUA Board announced it would be decreasing the NOL from 1.39 percent to 1.38 percent, effective immediately. Although NAFCU appreciates this reduction, we continue to fight to lower the NOL to its customary level of 1.30 percent. The NCUA also noted that if the equity ratio as of December 31, 2018 is above the NOL, which would be determined in February 2019, and several other statutory criteria are met, the agency will issue a distribution no later than the end of the second quarter of 2019 sufficient to bring the equity ratio down to the NOL. The NCUA also said it would continue to review the NOL annually.
In March 2019, the NCUA Boarda $160.1 million equity distribution from the NCUSIF to be paid to eligible credit unions in the second quarter of 2019, as the NCUSIF’s equity ratio was 1.39 percent, above the NOL of 1.38 percent, as of December 31, 2018.