Problem Credit Unions Update

NCUA reported that the number of problem credit unions declined from 369 at the end of January to 360 at the end of February. A problem credit union is defined as a credit union that has a CAMEL code of 4 or 5.










Problem credit union held fewer shares (deposits) and assets at the end of February. Shares (deposits) and assets in problem credit unions as of the end of February were $37.7 billion and $42.5 billion, respectively. NCUA reported that problem credit unions held 4.97 percent of the credit union industry’s insured shares and 4.64 percent of the industry’s assets.











The number of problem credit unions with $1 billion or more in assets increeased by one to 11 holding $18.5 billion in shares. The number of problem credit unions with between $500 million and $1 billion in assets fell from 6 in January to 5 in February with $3.3 billion in shares. There were 52 problem credit unions with between $100 million and $500 million in assets (4 fewer than in January) holding $11.5 billion in shares.










Also, NCUA reported that the number of credit unions with a CAMEL 3 rating, credit unions that pose some supervisory concern, fell for the second conseutive month to 1803 credit unions. These CAMEL 3 credit unions hold $133.9 billion in shares or about 17.67 percent of the industry's insured shares.

In a related story, Weiss Ratings, which is now providing ratings on the nation's credit unions, reported that 2,573 credit unions, or 34.3 percent of the industry, are included on its "Weakest List," while only 760, or 10.1%, are on the "Strongest List." A credit union with a rating of D+ or lower qualifies for its Weakest List, while a credit union with a B+ or higher rating qualifies for its Strongest List.

To access Weiss Ratings, click here.