ALEXANDRIA, Va.–The National Credit Union Share Insurance Fund (NCUSIF) was given a positive bill of health in its latest update.
During the NCUA board meeting, the agency’s CFO, Eugene Schied, shared that overall that as of Q1, the Share Insurance Fund reported a net income of $79.8 million, a $1.2 million increase from the fourth quarter of 2024. The Fund’s assets increased 3.14% in the first quarter to $23 billion from $22.3 billion at the end of 2024, while the equity ratio remains at 1.30% as of end of 2024.
There were also credit union failures in the first quarter of 2025.
NCUA’s Office of the CFO also used the meeting to introduce a new dashboard for the NCUSIF’s performance data that includes a significantly improved graphic interface.
The Data Points
Among the NCUSIF data points highlighted by Schied:
- The NCUSIF’s total asset increase of $23 billion in the quarter primarily due to $305.9 million in capitalization deposits receivable from credit unions, known as the “true-up.”
- At the end of the first quarter of 2025, the reserve balance was $242 million an increase of $5 million from the previous quarter. At quarter-end, the balance consisted of $9 million for specific reserves and $233 million for general reserves. The total increase of $5.4 million in reserves from the previous quarter was primarily attributable to $3.9 million increase in the general reserve and $1.5 million increase for the specific reserve.
- The equity ratio was 1.30% as of Dec. 31st 2024, which was an increase of two basis points from the June 30th (2024) level. The projected equity ratio for June 30th, 2025 is 1.26%. The decline is due primarily to forecasted insured share growth, with shares projected to grow year over year from June 30th 2024 to June 30th 2025 by 5.30%.
- As of March 31st the fund could have withstood a loss of $1.3 billion without dropping below the 1.20% equity ratio threshold that would necessitate a restoration plan.
- The fund’s portfolio yield is 2.60%, up 10 basis points from the fourth quarter of 2024.
- The fund continued to maintain the sizable balance and overnight investments of $5.6 billion in the “event the liquidity is needed and that would be accessible without incurring a potential loss to the fund,” Schied said.
- During the first quarter of 2025 eight treasury notes matured for a total value of $650 million. The securities had yields ranging from 0.29% to 2.08%. The proceeds were reinvested at higher yields during the quarter, which offset a small decline in the overnight rates by using the ladder approach NCUA uses to enhance the fund’s long term earnings stability, according to the CFO.
- Aggregate CAMELS data did not significantly change during the first quarter of 2025.
- The total number of credit unions was 4,415, decrease of 52 from the end of the fourth quarter 2024.
- The percentage of insured shares in the CAMELS code 1 and 2 categories was 90.8%, which was a slight increase from 90.2% at the end of the fourth quarter.
- CAMELS code three CUs represented 8.2% of all CUs, a decrease of from 8.9% in the previous quarter.
- CAMELS code four and five CUs were 1%, an increase from 0.9% at the end of the previous quarter.
Improved Transparency
NCUA’s deputy CFO, Melissa Lowden, described the new dashboard for the NCUSIF as a “significant step forward and enhancing our financial transparency and decision making capabilities. The dashboard design is partially inspired by common questions posed by NCAA leadership and stakeholders and we’ll continue to evolve the content as information needs change.”
The dashboard can be seen in the slides below.
NCUA Chairman Kyle Hauptman’s comments on the NCUSIF can be found here.
