NCUA Chairman Debbie Matz and Board Member Michael Fryzel stuck to a controversy-free agenda during the agency’s October board meeting last week. Among the news was a report that improving CAMEL ratings resulted in a $147.2 million reduction in reserves during the third- quarter for National Credit Union Share Insurance Fund. Chief Financial Officer Mary Ann Woodson said the fund’s reserve balance fell from $606.6 million as of June 30 to $484.9 million as of Sept. 30. Of the $485 million in reserves, $171 million is set aside for specific reserves, with the remaining $314 million tagged for nonspecific reserves, she said. Woodson reported that as of Sept. 30, 382 credit unions had CAMEL codes of 4 or 5, a decrease of 17. The most notable decrease was in the $100 million to $500 million asset category, where 10 credit unions improved their position. CAMEL 4 and 5 credit unions represent 2.8% of insured shares and $26.3 billion in assets, Woodson said.
The number of CAMEL code 3 credit unions also improved during the third quarter, with Woodson reporting 1,639 credit unions receiving the designation, down from 1,679 as of June 30. CAMEL 3 credit unions represent nearly 14% of insured shares and $116.5 billion in industry assets, she said.