NCUSIF 2017 Distribution
At its February 2018 open meeting, the National Credit Union Administration Board declared a $736 million dividend to eligible institutions to be paid in the third quarter 2018.
In a final rule approved at the February 2018 open meeting, the Board established the following method for allocating distributions:
For distributions related to the Corporate System Resolution Program (those made in respect of calendar years 2017 through 2021), each eligible financial institution’s pro rata distribution will be based on the average insured shares reported in quarterly Call Reports extending back to the beginning of calendar year 2009. This calendar year marks the beginning of the Corporate System Resolution Program and the first calendar year in which the Board charged corporate assessments.
For distributions after 2021, an eligible financial institution’s pro rata share would be based on its quarterly average insured share balance as then reported over the calendar year in four quarterly Call Reports.
Eligible institutions are those that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in the calendar year for which the distribution is declared (March 31, June 30, September 30 or December 31).
Each institution receiving a distribution will receive a statement prior to receiving the dividend payment. The statement will be accompanied by the following explanatory statement:
Credit unions with questions regarding their dividend should email firstname.lastname@example.org
Stabilization Fund Closure
The ability for the NCUA to issue this historic dividend stems from the Board’s unanimous decision in September 2017 to close the Temporary Corporate Credit Union Stabilization Fund. By law, the Stabilization Fund’s assets and obligations were transferred to the National Credit Union Share Insurance Fund. Had the Board not closed the Stabilization Fund, credit unions would not have received a distribution and could have faced premium charges totaling more than $1.3 billion.