Friday, October 19, 2012

Number of Problem CUs Fell During Q3

The number of problem credit unions, as well as shares (deposits) and assets in problem credit unions fell during the third quarter. A problem credit union is defined as having a CAMEL code of 4 and 5.

Problem credit unions decreased by 17, for a total of 382 as of Sept. 30. Assets and shares were $26.3 billion and $23.5 billion, respectively.

The number of problem credit unions with $500 million or more in assets was unchanged between the end of the second quarter and the end of the third quarter.

There were 7 credit unions with more than $1 billion in assets on the problem list. These 7 credit unions have $11.3 billion in shares.

There were another 4 credit unions with between $500 million and $1 billion in assets on the problem list.

During the quarter, there were 10 fewer problem credit unions with between $100 million and $500 million in assets. As of the end of September, there were 30 credit unions in this cohort.

As a percentage, CAMEL code 4 and 5 credit unions represented 2.8 percent of total insured shares and 2.5 percent of total industry assets.

Year-to-date, there have been 16 credit union failures -- the same number that failed in all of 2011. Seven were assisted mergers, and nine were involuntary liquidations, of which six were assisted purchase and assumptions.

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