The Central Liquidity Facility's membership, assets and stockdividend rate grew in the first quarter of 2014, the NCUA announcedon Friday.

CLF membership grew to 218 credit unions from 129 at the end ofthe first quarter of 2013. Assets increased to $180 million from$115 million at the end of the first quarter of 2013. Retainedearnings reached $27.8 million from $27.4 million in the same timeperiod while the maximum legal borrowing authority grew from $2.4billion to $3.8 billion in the first quarter of 2014.

The stock dividend rate for the CLF went from the .10%rate paid quarterly since the fourth quarter of 2012 to .25% in thefirst quarter of 2014, the agency said in its announcement.

“CLF management expects moderate growth in both membership andportfolio earnings during 2014, with a strong likelihood the 0.25percent rate will continue,” the announcement said.

“It's most encouraging to see the CLF performing well. The CLFis a reliable source of emergency liquidity, which is important tothe stability of the credit union system,” NCUA Board ChairmanDebbie Matz said. “The 69% increase in credit union participationduring the last year has also resulted in more CLF borrowingcapacity to meet emergency liquidity needs.”

According to the NCUA, “The CLF's steady growth in membershipand assets has enabled it to expand its earnings base and borrowingcapacity, increase retained earnings and pay the higher dividendrate.”

The NCUA Board approved a final rule at the agency's board meeting lastOctober that required federally insured credit unions with morethan $50 million in assets to ensure access to an emergencyliquidity source.

CLF membership is voluntary and open to all credit unions thatpurchase a prescribed amount of CLF stock.

As of March 31, 2014, credit unions with assets greater than$250 million must have established access to at least onecontingent federal liquidity source, either the CLF or the FederalReserve's Discount Window or both, the NCUA said.

Credit unions with assets between $50 million and $250 millionmust have a contingency funding plan for meeting emergencyliquidity needs, and credit unions with assets of less than $50million must have a policy for managing liquidity, the agencysaid.