The fund that insures member savings in federally insured credit unions had $46.3 million in net income and $19.8 billion in assets in the second quarter of 2021, but the fund’s operating level remained well below the agency board-approved normal operating level of 1.38%.
The National Credit Union Share Insurance Fund (NCUSIF) had a 1.23% equity ratio as of June 30, according to information released at Thursday’s National Credit Union Administration (NCUA) open board meeting.
The fund operating level dove to 1.22% in June 2020 from 1.35% in December 2019, largely as a result of rapid share growth amid the COVID-19 pandemic. By the end of 2020, the fund ratio was up to 1.26%, but it declined again in the first half of 2021.
Staff projections suggest the fund will rise to 1.28% by calendar year-end.
As of June 30, the agency said there were 764 credit unions with CAMEL code 3 (up from 754 in March); these institutions represented 2.69% of insured shares. It said there were 144 CAMEL code 4 and 5 credit unions as of June 30 (down from 154 in March); these institutions represented 0.53% of insured shares.