Undercapitalized Credit Unions, September 2012

As of September 30, 2012, there were 104 credit unions that were undercapitalized. This was down from 120 credit unions as of June 2012 and 165 credit unions, as of September 30, 2011.

Six credit unions were critically undercapitalized and another 14 credit unions were significantly undercapitalized, including two credit unions that received Section 208 net worth assistance from NCUA.

NCUA announced in October the merger of two critically undercapitalized credit unions -- El Barrio and NorthCounty Cooperative.

Several credit unions were classified as undercapitalized, although they met the minimum net worth leverage ratio of 6 percent to be adequately capitalized. This is most likely due to them being classified as complex credit unions and they are not meeting their risk-based net worth requirement.