ALEXANDRIA, Va. (9/18/15)--The Temporary Corporate Credit Union Stabilization Fund remains in the net positive position as of June 30, according to National Credit Union Administration Chief Financial Officer Rendell Jones. Jones presented an update on the fund Thursday at the NCUA’s board meeting.
The fund’s net position increased by $183.8 million to a positive $475 million. The increase included a $107.3 million recovery related to the sale of several securities originally held by failed corporate credit unions, as well as a $65.6 million reduction in provisioning for insurance losses as a result of continuing improvements in cash flows.
Outstanding borrowings by the fund from the U.S. Treasury remained at $2.6 billion at the end of the second quarter. In August after the quarter closed, the NCUA made a payment of $300 million towards that borrowing, reducing the balance of outstanding borrowings to $2.3 billion.
As NCUA Chair Debbie Matz noted at the meeting, this is the fifth straight quarter the fund has recorded a net positive position. Matz added that, should projections over the last several quarters hold, there will be no further assessments.
The fund is scheduled to expire in June 2021.