Impact of 2013 Assessments on CU Net Worth and Profitability

During the November NCUA Board meeting, the agency announced that premium assessments for 2013 could range from 8 basis points to 16 basis points.

An assessment of 8 basis points is expected to lower the net worth ratio for credit unions by 3 basis points and credit union return on assets by 7 basis points. NCUA anticipates that this assessment would cause 300 credit unions to report a loss.

However, an assessment of 16 basis points would reduce the net worth ratio by 9 basis points and lower the return on assets by 13 basis points. NCUA expects 604 credit unions would report a loss based upon this assessment.