Problem Credit Unions Rose in September 2010

During the October 21 NCUA Board meeting, NCUA reported that the number of problem credit unions increased, as did assets and shares (deposits) in problem credit unions. A problem credit union is defined as having a CAMEL 4 or 5 rating.

NCUA reported that the number of problem credit unions increased by 14 during the month of September to 374. A year earlier, there were 326 problem credit unions.











Shares and assets in problem credit unions rose by $500 million each in September to $40 billion and $45.3 billion, respectively.

Approximately 5 percent of the industry’s assets and 5.32 percent of shares are in problem credit unions.

The number of $1 billion plus problem credit unions was 13 as of September -- a reduction of one -- and these 13 credit unions held $18 billion in shares (or 45 percent of the shares in problem credit unions). The net increase in problem credit unions came from institutions with $500 million or less in assets, which added 15 credit unions with $1.3 billion in shares.