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NCUA Board Reaffirms No NCUSIF Premium for 2014
Friday, October 24, 2014 6:45 AM

Yesterday, the National Credit Union Administration Board reaffirmed that there will be no National Credit Union Share Insurance Fund premium for 2014. 

The Share Insurance Fund ended the third quarter of 2014 with a net income of $24.6 million and an equity ratio of 1.30 percent. The equity ratio is calculated on an estimated insured share base of $895.7 billion and reflects the capitalization deposit adjustment billed in September.

"With the Share Insurance Fund on a sound footing, NCUA will not charge federally insured credit unions a premium in 2014," NCUA Board Chairman Debbie Matz said. "The number of troubled credit unions continues to decline, and insurance losses remain manageable. Prudent regulation and supervision of a credit union system that continues to be strong and stable have kept the Share Insurance Fund at the maximum equity ratio permitted by law."

Third-quarter investment and other income was $54 million; operating expenses were $48.1 million; and the provision for insurance losses was reduced by $18.7 million. Net income for the third quarter was $24.6 million. The third-quarter figures are preliminary and unaudited.

Shares in troubled credit unions, those rated CAMEL code 4 or 5, were 1.38 percent of federally insured credit union shares for the third quarter, an improvement compared to 1.46 percent in the second quarter. Also, for the third quarter:

  • The number of CAMEL code 4 and 5 credit unions fell 9.1 percent from the third quarter of 2013 to 288.
  • Assets of CAMEL code 4 and 5 credit unions were $14 billion, a 10.3 percent decline from the third quarter of 2013.
  • The number of CAMEL code 3 credit unions declined 2.2 percent from the third quarter of 2013 to 1,450.
  • Assets of CAMEL code 3 credit unions were $104.7 billion, a 3.4 percent decrease from the third quarter of 2013. 
  • Four federally insured credit unions failed during the third quarter of 2014. Total year-to-date losses associated with credit union failures were $30.4 million, of which $28.6 million was related to fraud.