NCUSIF Equity Ratio Above Normal Operating Level at the End of 2018

The National Credit Union Administration (NCUA) on February 15 released the audited financial statements for the National Credit Union Share Insurance Fund (NCUSIF).

Below are some highlights from the report.

As of December 31, 2018, equity in the NCUSIF was $15.72 billion. The equity ratio for the NCUSIF was 1.39 percent, which was above the Normal Operating Level of 1.38 percent.

For 2018, there were eight credit union failures compared to 10 failures in 2017. The cost of these failures, or the estimated cost of resolution at the time of liquidation, for 2018 is $785.0 million compared to $24.4 million for failures that occurred in 2017.

The NCUSIF ended 2018 with Insurance and Guarantee Program Liabilities of $119.1 million to cover probable losses as compared with $925.5 million for the previous year-end. The decline in reserves were primarily due to the resolution of certain troubled credit unions.

At the end of 2018, specific reserves were $7.3 million. Specific reserves are identified for those credit unions where failure is probable and additional information is available to make a reasonable estimate of losses. General reserves were $111.8 million.

At the end of 2018, NCUA did not guarantee any line-of-credit to a third-party lender.

Additionally, the NCUSIF did not provide any indemnifications as part of merger assistance or purchase and assumption agreements with acquiring credit unions.