Tue, Apr 23, 2013
Washington, District Of Columbia
The NCUA Board of Directors met on Thursday for their April board meeting. The Board did not consider any regulations during the meeting, and the only item on the agenda was a report regarding the health of the National Credit Union Share Insurance Fund (NCUSIF), the health of the Temporary Corporate Credit Union Stabilization Fund (TCCUSF), and the general health of the credit union industry.
The report on the health of the NCUSIF mirrored what many in the industry have been reporting – things are generally getting better. The NCUSIF equity ratio jumped up slightly in the first quarter to 1.31% from its previous ratio of 1.30% at year-end 2012. Painting an increasingly brighter picture was the decrease in the number of CAMEL 4 and 5 credit unions, and the percentage of shares held by those credit unions classified as CAMEL 4 and 5. During the first quarter of the year, the amount of CAMEL 4 and 5 credit unions dropped from 369 to 339, and the percentage of shares held by CAMEL 4 and 5 credit unions dropped 2.02% to 1.79%. Combined insured shares in CAMEL 3, 4, and 5 credit unions represent approximately 13.89% of total insured shares, down from 14.6% at year-end 2012 and 19.2% at year-end 2011.
At the end of the first quarter, the TCCUSF had $5.1 billion in outstanding borrowings with the U.S. Treasury. This amount is very similar to the amount that was outstanding at year-end 2012. Based on the TCCUSF report, nothing has changed with regards to the projection made last month by the NCUA, which projected that that assessments for the TCCUSF had dropped by $900 million. Therefore the projected total remaining assessments, according to the Agency, remains at $1.6 billion - $3.9 billion (down from the $1.9 billion - $4.8 billion projected last fall).