NCUA Board Receives Share Insurance Fund Quarterly Report

Logo for the National Credit Union Administration

The latest report on the National Credit Union Share Insurance Fund (NCUSIF) showed total income of $61.8 million and a net loss of $54.4 million for the quarter ending March 31, 2022, according to a presentation during the National Credit Union Administration's (NCUA) monthly May board meeting this past week.

The balance sheet indicated total liabilities and net position of more than $20.6 billion, a slight decrease from the previous quarter. The fund’s reserve balance stands at $166 million as of the end of the first quarter, with $7.5 million being for specific reserves.

In the first quarter of 2022, there were two credit union failures for a total loss of $200,000; fraud contributed to both failures.

The number of CAMEL Code 4/5 credit unions decreased slightly from the preceding quarter to 125; CAMEL Code 3 credit unions decreased by one to 751. Overall, over 97 percent of assets are held by CAMEL Code 1/2 credit unions, a slight decrease from the preceding quarter.

As of Dec. 31, 2021, the equity ratio of the fund was 1.26 percent. The ratio is updated twice a year. The ratio was 1.23 percent as of June 2021. The Normal Operating Level (NOL) of the fund is 1.33 percent. Staff projects the equity ratio will decrease to 1.25 percent for the period ending June 30, 2022.

NCUA Board Chairman Todd Harper noted that, “although the equity ratio sits below an ideal level, it remains relatively stable.” However, he did discuss concerns related to rising interest rates, and mentioned credit unions’ ability to manage interest rate risk will remain a crucial factor going forward.

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