Thursday, September 20, 2018

Assets and Shares in Problem CUs Increase During Second Quarter

The number of problem credit unions increased during the second quarter of 2018, according to the National Credit Union Administration (NCUA).

At the end of the second quarter of 2018, there were 210 problem credit unions. In comparison, there were 200 problem credit unions at the end of the first quarter of 2018.

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

Total assets and shares (deposits) in problem credit unions rose during the second quarter. Assets in problem credit unions were $12.9 billion at the end of the second quarter compared to $9.2 billion at the end of the first quarter of 2018. Shares in problem credit unions increased to $11.8 billion as of June versus $8.3 billion as of March 31, 2018.

NCUA reported that 88 percent of problem credit unions have less than $100 million in assets, while almost 2 percent have more than $500 million in assets.

There were two credit unions with more than $1 billion in assets classified as problem credit unions. These two credit unions had $4 billion in shares.

At the end of the second quarter, 1.04 percent of total insured shares were in problem credit unions. As of March 2018, 0.76 percent of total insured shares were in problem credit unions.

NCUA reported that reserves for the National Credit Union Share Insurance Fund (NCUSIF) increased from $935.8 million at the end of the first quarter 2018 to $957 million. As of June 2018, $854.9 million is for specific reserves for natural person credit unions.

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