ALEXANDRIA, Va.—At its open board meeting Thursday, NCUA announced it will not be assessing credit unions an NCUSIF premium in 2014.
That decision marks the fourth consecutive year the agency has not charged the assessment on the deposit insurance fund. The news relieves credit unions from the burden of premiums and assessments that over a recent five-year period reached into the billions of dollars to bail out troubled credit unions and the corporates.
During the Share Insurance Fund quarterly report, CFO Mary Ann Woodson reported to the board meeting that that the NCUSIF equity ratio had reached 1.30%, the normal operating level, and as a result no premium would need to be charged in order to replenish the fund. NCUA said drivers of the equity ratio in 2014 were similar to those of most years: growth in insured shares, cost and pace of CU failures, and improved yield on investments.
The NCUSIF ended Q3 with net income of $24.6 million. Third quarter investment and other income was $54 million and operating expenses $48.1 million.