Problem Credit Unions Grew in May

NCUA reported that the number of problem credit unions increased by 3 in May to 377 – the second most for this credit cycle. In October 2010, there were 378 problem credit unions. A problem credit union is defined as having a CAMEL code of 4 or 5.

Credit unions with less than $10 million in assets accounted for the increase in the number of problem credit unions, while the number of problem credit unions between $10 million and $1 billion declined over the month.

However, assets and shares (deposits) in problem credit unions fell in May. According to NCUA, shares in problem credit unions fell by $900 million in May to $36.0 billion. NCUA reported that 4.75 percent of all insured shares were in problem credit unions.