Friday, February 21, 2020

There Were Fewer Problem CUs During Q4 2019

The number of problem credit unions fell during the fourth quarter of 2019, according to the National Credit Union Administration (NCUA).

At the end of 2019, there were 190 problem credit unions. In comparison, there were 200 problem credit unions at the end of the third quarter of 2019.

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

Total assets in problem credit unions were $10.8 billion at the end of the fourth quarter. Assets in problem credit unions were $11.2 billion at the end of the third quarter.

Shares (deposits) in problem credit unions declined during the fourth quarter to $9.7 billion from $10.1 billion as of September 2019. At the end of 2019, 0.79 percent of total insured shares were in problem credit unions. In comparison, 0.84 percent of total insured shares were in problem credit unions as of June 2019.

Most problem credit unions were small credit unions.

NCUA reported that almost 88 percent of the problem credit unions have less than $100 million in assets, while 1.6 percent of problem credit unions have more than $500 million in assets.

NCUA reported that there were only 2 credit unions failures in 2019 that resulted in a loss to the National Credit Union Share Insurance Fund, which was down from 8 in 2018.
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