Problem Credit Union Update, June 2011

NCUA reported 381 problem credit unions as of June -- the fourth consecutive monthly increase and the highest total since the beginning of the financial crisis in 2008. A problem credit union is defined as having a CAMEL code of 4 or 5.

As of June, assets and deposits (shares) in problem credit unions were April to $39.8 billion and $35.5 billion, respectively.

Since the end of last year, problem credit unions are holding a smaller percentage of the industry's assets and shares. At the end of 2010, 5.13 percent of shares and 4.79 percent of assets were in problem credit unions. As of June, NCUA reported that 4.51 percent of all insured shares and 4.13 percent of the industry's assets were in problem credit unions.

There were 11 credit unions with $1 billion or more in assets on the problem list holding $18.7 billion in shares. This is unchanged from May.

Four credit unions with between $500 million and $1 billion were rated a CAMEL 4 or 5, while 47 credit unions with between $100 million and $500 million were on the problem list.