NCUA Board Approves Share Insurance Equity Distribution

The National Credit Union Administration Board approved a $160.1 million equity distribution from the National Credit Union Share Insurance Fund today that will be paid to eligible credit unions in the second quarter of 2019.

A financial institution that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in the calendar year 2018 will be eligible for a pro rata distribution. The eligibility criteria for credit unions to receive an equity distribution is detailed in a final rule approved by the NCUA Board in February 2018.

Based on the total of insured shares reported in the fourth quarter Call Reports, the equity ratio of the Share Insurance Fund was 1.39 percent at the end of 2018, which is above the Board approved normal operating level of 1.38 percent. To reduce the equity ratio to the approved normal operating level, a $160.1 million distribution is required. Additional information on the Share Insurance Fund’s equity ratio and normal operating level is available on NCUA’s website.

“This is the second largest distribution to credit unions in the history of the Share Insurance Fund — only last year’s distribution was larger,” NCUA Board Member Rick Metsger said.