Problem Credit Union Update, Q3 2014

The number of problem credit unions declined by 7 during the third quarter of 2014 to 288 credit unions.

A problem credit union is defined as a credit union with a CAMEL rating of 4 or 5.

Assets at problem credit unions declined from $14.9 billion as of June 2014 to $14 billion as of September 2014. Deposits (shares) at problem credit unions fell from $13.2 billion at the start of the third quarter to $12.4 billion at the end of the quarter.

According to NCUA, problem credit unions held 1.38 percent of the industry's insured deposits and 1.3 percent of the industry's assets.

While the vast majority of problem credit unions are smaller institutions, the bulk of the shares are in credit unions with $100 million or more in assets.

The number of problem credit unions with $500 million or more in assets declined from 8 to 6 during the third quarter. At the end of the quarter, these 6 problem credit unions held $4.5 billion in shares.

The number of problem credit unions with between $100 million and $500 million in assets increased by 3 to 22 credit unions with total shares of $4.2 billion.