ALEXANDRIA, Va. — Because of the credit union system's improvedfinancial health, the NCUA is lowering the NCUSIF'sreserve balance from $1.2 billion to $871 million, NCUA CFOMary Ann Woodson told the agency's board on Thursday.
|The lower reserve will raise the fund's equity ratio and thiscould result in lower assessments next year.
|Woodson said the fund's equity ratio was 1.32% at the end ofOctober. It had been 1.31% for the three previous months.
|The fund's income was $136.9 million in September and has been$367.6 million in total so far this year. When the agency preparedthe budget last year, during a much more difficult economicclimate, the fund was projected to lose $465 million during thefirst nine months of 2011, Woodson said.
|There have been 13 credit union failures this year, comparedwith 28 for all of 2010.
|At the end of October, 3.89% of insured shares were in CAMEL 4and 5 credit unions, compared with 3.88% at the end of Septemberand 5.13% at the end of last year.
|As of October 31, 15.87% of insured shares were in CAMEL 3 credit unions, compared with 16.59% at the end ofAugust and 18.26% at the end of last year, Woodson said.
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