Problem CUs Down; But Assets and Shares Increase in Q2 2014

The National Credit Union Administration reported that there were 295 problem credit unions at the end of the second quarter of 2014 -- a decline of 11 from the end of the first quarter.

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

However, the assets and shares (deposits) in problem credit unions rose during the quarter. At the end of the first quarter, total shares and assets in problem credit unions were $11.9 billion and $13.6 billion, respectively. By the end of the second quarter, total assets and shares in problem credit unions had increased to $13.2 billion and $14.9 billion, respectively.

As of June 30, 2014, 1.46 percent of the industry's insured shares and 1.4 percent of assets were in problem credit unions.

While the number of problem credit unions fell, it was among credit unions with less than $100 million in assets. Credit unions with between $100 million and $500 million saw an additional 5 credit unions join the problem list, bringing the total to 19 credit unions. The number of problem credit unions with assets between $500 million and $1 billion rose by one to 5 during the quarter.