On-Site Coverage: NCUA Reports Rise in Troubled Credit Unions
ALEXANDRIA, Va. -- The NCUA reported today that the number of troubled credit unions increased at the end of last year. NCUA CFO Mary Ann Woodson told the NCUA's Board today that there were 368 CAMEL 4 and 5 credit unions at the end of December, compared with 351 at the end of December 2009.
Last month's number was a decline from the 372 in November.
In December, 5.08% of all insured shared were at CAMEL 4 and 5 credit unions, compared with 5.10% in November and 5.72% in December 2009.
In December, there were 1,827 CAMEL 3 credit unions, compared with 1,792 in November and 1,668 in December 2009.
Last month, 18.1% of insured shares were in CAMEL 3 credit unions, compared with 13.67% in December 2009 and 18.6% in November 2010.
There were 28 credit union failures in 2010, the same number as in 2009. However, Woodson told the board that the 2010 failures cost the NCUSIF $220 million, compared with $124 million in 2009.
The fund lost $45.4 million in December, but its net income for 2010 was estimated to be $283 million. Its equity ratio was 1.28% in December, compared with 1.29% in November and 1.26% in December 2009.
Board members also unanimously approved a final rule spelling out what credit unions must disclose to their members about overdraft protection programs.
The rule, which was unchanged from the interim rule approved last summer, requires credit unions to disclose in their periodic statements the total amount of the fees for overdraft protection that they are charging a member. They must use the phrase "total overdraft fees.''
NCUA Staff Attorney Jason Anderson told the board that agency had rejected requests from CUNA and NAFCU to use alternative language to "total overdraft fees,'' because that language is in the original rule issued by the Fed and because it enables consumers to "compare fees on an apple to apples basis.''