ALEXANDRIA, Va.—At NCUA’s open board meeting Thursday, the agency said it is too soon to project whether credit unions will be assessed an NCUSIF premium in 2016.
During the agency’s quarterly review of the National Credit Union Share Insurance Fund, which received a clean audit, CFO Rendell Jones said it is too soon to make a determination on a premium assessment.
He indicated analysis following June data will mean an early Fall determination of whether any premium needs to be changed.
NCUA reported that the fund’s equity ratio dropped to 1.26% at the close of December, 2015. NCUA can assess a premium to credit unions when the ratio is projected to end the year under 1.30%, but is only required to charge a premium if the year-end equity ratio drops below 1.20%.
Jones noted that the equity ratio will be climb to 1.29% in March when the Share Insurance Fund adjustments are booked. At the November 2015 board meeting Jones announced an estimated premium range of zero to six basis points for 2016. As the result of being below 1.3%, Jones said no distribution will be made to the corporate stabilization fund.
In his testimony to the board, Jones said CAMEL Code 4 and 5 credit unions decreased by a net of 56 during 2015. Of the Code 4 and 5 CUs, 92% have $100 million or below in shares. One-percent of those CUs have more than $500 million in shares.
Total shares in Code 4 and 5 CUs are $7.7 billion, or .8% of all NCUSIF-insured shares, Jones said.
Jones said there were 16 CU failures during 2015 at a cost to the insurance fund of $14.8 million. That compares to 2014 when there were 15 failures at a cost of $40.4 million to the NCUSIF.