NCUA Board Briefed on Share Insurance Fund in First Quarter of 2022

May 2022
NCUA Board Briefed on Share Insurance Fund in First Quarter of 2022

Board Action Bulletin

ALEXANDRIA, Va. (May 26, 2022) – Through a live webcast, the National Credit Union Administration Board held its fifth open meeting of 2022 and was briefed on the performance of the National Credit Union Share Insurance Fund.

The Share Insurance Fund reported a net income of $54.4 million and a net position of $20.4 billion for the first quarter of 2022. The Fund’s total assets decreased to $20.6 billion at the end of the quarter from $20.7 billion at the end of the fourth quarter of 2021.

“The Share Insurance Fund continued to perform well in the first quarter,” NCUA Chairman Todd M. Harper said. “Quarterly net income rose by approximately $42 million due to the continued reduction of expected losses associated with the remaining legacy assets of the Corporate System Resolution Program. That is positive news. We are now seeing a normalization of the Share Insurance Fund’s performance to what it was before the Board decided to fold the Temporary Corporate Credit Union Stabilization Fund into the Share Insurance Fund.”

The quarterly report included an equity ratio projection. For June 30, 2022, NCUA staff projects the equity ratio for the Share Insurance Fund will be 1.25 percent.

“Although the equity ratio sits below an ideal level, it remains relatively stable,” said Chairman Harper. “Nevertheless, we continue to see a slow, steady decline of the equity ratio due to continued elevated insured share growth and low interest rates, at least from a historical perspective. As such, the NCUA Board must continue to monitor the Share Insurance Fund’s performance and remain ready to act. Such monitoring includes assessing the effects of the changing interest-rate environment on the Fund’s portfolio.”

Additionally, for the first quarter of 2022:

  • The number of composite CAMEL codes 4 and 5 credit unions decreased from 129 to 125 at the end of the fourth quarter of 2021. Assets for these credit unions decreased from the fourth quarter of 2021 to the first quarter of 2022, to $3.8 billion from $8.8 billion.
  • The number of composite CAMEL code 3 credit unions decreased from 752 to 751 at the end of the fourth quarter of 2021. Assets for these credit unions increased from the fourth quarter of 2021, to $43.8 billion from $43.0 billion.

At the end of the first quarter of 2022, there were two federally insured credit union failures that cost the Share Insurance Fund approximately $200,000 in losses.

The first quarter figures are preliminary and unaudited.

Additional information on the performance of the Share Insurance Fund is available on the NCUA’s website.

The NCUA tweets all open Board meetings live. Follow @TheNCUA on Twitter, and access Board Action Memorandums and NCUA rule changes at www.ncua.gov. The NCUA also live streams, archives and posts videos of open Board meetings online.

Last modified on
05/26/22