ALEXANDRIA, Va.–NCUA is reporting the National Credit Union Share Insurance Fund reported $100.4 million in net income during Q3, an increase of $18.4 million over Q2, and is on track to hit a 1.30% equity ratio by year end, according to an update provided during an agency board meeting.
The update on the NCUSIF performance was provided by the agency’s acting CFO, Melissa Lowden, who noted a lower provision for insurance losses and higher investment income played a role in the performance, as did a $119.5 million reduction in unrealized investment losses. There were two CU failures during Q3. Those CUs had a combined $94 million in assets, with the losses to the NCUSIF $7 million.
The reserve balance for the NCUSIF finished Q3 at $240.3 million. The fund has $5.5-billion in overnights for liquidity purposes, while $700 million in Treasury Notes matured that had yields ranging from .27% to 1.80%, which have since been reinvested at higher yields.
CAMELS Data
Overall, according to Lowden:
- The aggregate CAMELS data, which remained stable in Q3, showed a total of 4,339 federally insured CUs, a decrease of 42 from the end of Q2.
- The percentage of insured shares in the CAMELS code 4 or 5 category remained at .7%
- The percentage of CUs in the CAMELS Code 3 three category was 8.4%, a decrease from the second quarter is 9.2%.
- More than 90% of insured shares were rated CAMELS Code 1 or 2
Enhanced Dashboard
Lowden urged credit unions to take advantage of the enhancements and additional public access to the share insurance fund dashboard available on the agency’s website, noting it has implemented mobile templates that deliver a native layout for app users and a phone optimized browser experience, which she said improves usability and accessibility by ensuring clear readable visuals and consistent performance on mobile devices.
More detailed NCUSIF performance data can be found in the charts below.
