Share insurance fund posts $25M net income in 2015 1Q
April 30, 2015
ALEXANDRIA, Va. (5/1/15)--Stable income, continued federal credit union performance and a decline in insurance and guarantee program liabilities led to the National Credit Union Share Insurance Fund (NCUSIF) ending the first quarter of 2015 in a strong position.
This according to Rendell Jones, chief financial officer of the National Credit Union Administration, who presented a quarterly update on the fund at Thursday's board meeting.
The fund posted net income of $25 million in the first quarter of 2015 and a 1.3% equity ratio. For the first quarter, investment and other income was $53.3 million, operating expenses were $43.8 million and the provision for insurance losses was reduced by $14.5 million.
NCUA Chair Debbie Matz said the assets in CAMEL code 1 and 2 credit unions are at the highest level in the last 10 years--90.7%. The NCUSIF's reserve for insurance losses saw a net decrease of $8.7 million, or 4.9%, in the Share Insurance Fund's reserve for insurance losses in the first quarter of 2015.
Other changes from the first quarter of 2014 to the first quarter of 2015 include:
The number of CAMEL codes 4 and 5 credit unions fell 15.7% to 258;
Assets in CAMEL codes 4 and 5 credit unions declined 14.7% to $11.6 billion.
The number of CAMEL code 3 credit unions declined 7.9% to 1,355; and
Assets in CAMEL code 3 credit unions declined 14.2% to $91.8 billion.
According to the NCUA, the total amount of losses associated with failures in the first quarter of 2015 was $1.8 million, a decrease of 90.3% from $18.6 million in the first quarter of 2014.
For more coverage of Thursday's NCUA meeting, see "CUNA-sought changes in NCUA final FOM rule: Input sought on IOLTAs" and "NCUA adopts final corp. CU rule, proposes changes to bridge-loan rule" in today's News Now.