ALEXANDRIA, Va. — NCUA's top financial official said today if the National Credit Union Share Insurance Fund could end the year with a loss.
"I don't predict it, I don't rule it out," NCUA Chief Financial Officer Mary Ann Woodson said at the agency's board meeting.
She said the fund's net income at the end of the year will probably be lower than the projected figure of $23 million.
Recommended For You
The effects of the recession on credit unions and the greater than expected losses suffered by some of them have taken their toll on the fund, she said.
In November, the fund's net income increased $14.9 million. However, so far this year the fund has been forced to pay out $223.9 million as a result of credit union failures. The fund had $177 million in insurance loss expense for troubled credit unions as of Nov. 30.
The fund's equity ratio was 1.27. The agency projects it will end the year with an equity ratio of 1.28%, compared with $1.29% at the end of last year. Congress requires the equity ratio to be 1.2%-1.5%. The NCUA must levy a premium if the ratio drops to 1.2%.
As of Nov. 30, there were 257 credit unions with CAMEL code 4 or 5 ratings, but those credit unions represented 2.2% of all insured shares. By contrast, the last time there was a higher number of credit unions with those ratings -280 in 2005–those credit unions represented 1.1% of all insured shares.
So far this year, there have been 16 credit union failures, compared with 12 in 2007.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
