Number of Problem CUs Down; Assets and Shares in Problem CUs Up During Q3

The National Credit Union Administration (NCUA) reported today that the number of problem credit unions fell by 13 during the third quarter to 317. A problem credit union has a composite CAMEL rating of 4 or 5.

However, assets and shares (deposits) in problem credit unions increased during the quarter by approximately $600 million and $300 million, respectively. At the end of the third quarter, problem credit unions had $15.6 billion in assets and $13.7 billion in shares.

The percent of problem credit union shares to total industry shares rose from 1.54 percent at the end of June to 1.58 percent at the end of September. Assets at problem credit unions comprised 1.5 percent of the total industry's assets as of September 30, 2013.

NCUA noted that the number of problem credit unions with $1 billion or more in assets increased from 3 as of June 2013 to 4 at the end of September 2013. Total shares rose from $3.2 billion to $3.9 billion.

On the other hand, the number of problem credit unions with between $500 million and $1 billion in assets fell by 1 to 3 as of the end of the third quarter. Shares in these 3 problem credit unions equalled $1.7 billion.