Problem CU Update

NCUA reported today that the number of problem credit unions, assets in problem credit unions, and deposits (shares) in problem credit unions fell in August.

A problem credit union has a CAMEL rating of 4 or 5.

At the end of August, there were 369 problem credit unions -- down from the recent high of 381 credit unions in June.

Assets and shares in problem credit unions were to $34.8 billion and $30.9 billion, respectively. The percentage of the industry's assets and shares in problem credit unions were 3.5% and 3.96%.

The decline in assets and deposits in problem credit unions in August arose from one $1 billion plus credit union and two credit unions with between $500 million and $1 billion no longer being rated as a CAMEL 4 or 5. These three institutions accounted for a combined $5.7 billion decline in deposits on the problem list.