ALEXANDRIA, Va. — According to NCUA Chief Financial Officer Dennis Winans' presentation today at the NCUA Board meeting, losses to the insurance fund would have to more than double to make even the slightest dip in the equity ratio by yearend.
Winans said the gross income of the NCUSIF came in $4.4 million over budget while operating expenses were $1.4 million under budget. Still, the higher than expected insurance losses of $25.4 million over the $18.0 million budgeted putting the NCUSIF's net income just under budget, $154.0 million versus $154.9 million.
Even so, the NCUSIF equity ratio stands at 1.31% and is projected to reach 1.32% by yearend, allowing for the possibility of a refund.
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Hypothetically speaking, the figures showed that even if insurance losses reached up to $110 million, the equity ratio would still only dip to 1.31%. A loss of up to $165 million would put the equity ratio at 1.30%.
Winans also reported that as of September, there were only 218 CAMEL 4/5 credit unions as opposed to 240 last year and 280 the year before that. Additionally, the percent of insured shares they represent is falling from 1.12% in 2005 to 1.05% in 2006 and 1.03% as of September.
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