ALEXANDRIA, Va.–The National Credit Union Share Insurance Fund (NCUSIF) had net income of $82 million during Q2, a $2.2-million increase over Q1, there were four failures during Q2 that cost the fund $17 million in total, and there was an increase in the overall health of credit unions by CAMELS code, according to an update provided to the NCUA board on Thursday.
In addition, the fund’s equity ratio was 1.28% as of June 30th, a decrease of two basis points from Dec. 31st, 2024 (due to 2.9% growth in insured shares, and the projected equity ratio for Dec. 31st, 2025 is 1.30%, said Melissa Lowden, acting CFO.
Lowden, who succeeded former CFO Eugene Schied, who retired, offered the update to NCUA Chairman Kyle Hauptman, who was the loan board member present for the meeting as the lawsuit by fired board members Todd Harper and Tanya Otsuka remains in the courts.
The NCUSIF’s investment portfolio yield during Q2 was 2.68%, up eight basis points from the first quarter, and Lowden said funds are now being reinvested at higher yields.
CAMELS Code Improvement
At the end of Q2, the total number of federally insured credit unions was 4,381, a decrease of 34 from the end of the first quarter. The percentage of insured shares in the CAMELS code 4 or five category was .7%, a decrease from 1% at the end of Q1, while the number of CAMELS code three credit unions was 9.2% of the total, an improvement over the 8.2% as of Q1.
The full report on the NCUSIF can be seen in the charts below.
