On-Site Coverage: NCUSIF's Woes Continue Because of Credit Union Difficulties
ALEXANDRIA, Va.--The economy may be improving but credit unions are still hurting and that's reflected in today's report on the NCUSIF.
NCUA CFO Mary Ann Woodson told the NCUA Board that the fund lost $11.3 million in June. It's less than the $54.7 million that the fund was projected to lose. The fund's reserve balance at the end of June was $1 billion.
The fund's equity ratio was 1.21% at the end of May, down from 1.22% at the end of June. Matz said on July 22 that if current projections are correct, the equity ratio could drop below 1.2% by the fall.
The NCUA will decide at its September board meeting what assessment it needs to levy to shore up the fund.
Woodson said 23.14% of insured shares were in credit unions with a rating of CAMEL 3 or higher at the end of June, compared with 20.8% at the end of May.
At the end of June, 17.45% of insured shares were in CAMEL 3 credit unions, compared with 14.57% at the end of May. There were 1,739 CAMEL 3 credit unions at the end of June, compared with 1,724 at the end of May and 1,520 at the end of June 2009.
Woodson also reported that 5.69% of insured shares were in CAMEL 4 and 5 credit unions at the end of June, compared with 6.23% at the end of May. There were 366 Camel 4 and 5 credits at the end of June, compared with 351 at the end of May and 291 in June 2009.
There have been 18 failures of federally insured credit unions this year, including three in June compared with 28 in all of 2009.