No regulatory action items are on the brief agenda for Thursday’s open meeting of the National Credit Union Administration (NCUA) Board, though the board is slated to receive a report on the federal share insurance fund and reveal who will be vice board vice chairman now that Kyle Hauptman has risen to the post of chairman.
The last report on the National Credit Union Share Insurance Fund (NCUSIF, which insures member deposits in credit unions), was in November, though projections of the fund equity ratio are made only in June and December. In June, agency staff projected the fund will have closed 2024 at an equity ratio of 1.28% of total insured funds.
In November, then board Chairman Todd Harper noted continued “signs of financial strain on credit union balance sheets and consumer financial stress.”
The number of CAMELS code 4 and 5 credit unions had risen by two, to 138, as of the third quarter, though assets of these institutions had declined slightly from $19.6 billiion to $19.1 billion. The code 4 and 5 credit unions held 0.94% of total insured shares as of the third quarter. There remained nine code 4 and 5 credit unions, each having assets exceeding $500 million.
Code 3 credit unions totaled 730 in September, down from 743 in June. In September, code 3 credit unions held 9.03% of total insured shares. Code 1 and 2 credit unions totaled 3,640, down 14 from 3,654 at mid-year, and held 90.03% of insured shares, the agency’s report shows.
The total number of federally insured credit unions declined by 25 in the third quarter, from 4,533 to 4,508.
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