April NCUSIF Deposits Will Raise Equity to 1.26%
The NCUA isn't saying how much it will charge credit unions to repay corporate stabilization or other NCUSIF expenses.
However, Chief Financial Officer Mary Ann Woodson's March 18 share insurance fund report stated that after credit unions pay their regularly scheduled 1% deposit adjustment next month, the fund's equity ratio will rise to 1.26%. That's still a few basis points below the fund's 1.30% normal operating level, but much closer than last September, when a portion of the 15 basis point special assessment was needed to return the NCUSIF's equity ratio to 1.30%.
NCUA spokesman John McKechnie cautioned that stakeholders should "differentiate between the NCUSIF's current equity ratio and the Normal Operating Level" which he described as a "long-term target equity ratio."
"An NCUSIF equity ratio below the Normal Operating Ratio does not by itself require a premium assessment," he said. "NCUA's policies specifically allow the board to waive or reduce premiums when a premium charge is likely to exacerbate adverse trends within the credit union industry."
For the first two months of 2010, NCUSIF reported $19.5 million in net income despite six failed credit unions.