CUNA/league advocacy resulted in the NCUA board approving share insurance fund equity distributions at Thursday’s meetings, with the dividends expected to go to eligible credit unions in the third quarter of this year. CUNA was the only national trade association to advocate for the closure, and subsequent merger of, the Stabilization Fund into the Share Insurance Fund, which will result in equity distributions totaling $735.7 million in 2018.
“It’s because CUNA, the leagues and credit unions made their voices heard that equity distributions will go to credit unions this year. Had NCUA listened to others, credit unions would be facing a $1.33 billion premium assessment this year,” said CUNA President/CEO Jim Nussle. “We thank NCUA for listening to the vast majority of the credit union system,
The $735.7 million is larger than the cumulative amount of all previous cash distributions since the capitalization of the Share Insurance Fund.
The board also adopted a method for pro rata stabilization-related distributions based on each credit union’s quarterly average insured shares. This closely approximates the method CUNA advocated for in its comment letter last September.
Under the final rule, a credit union is eligible if it filed a quarterly call report as a federally insured credit union for at least one reporting period in calendar year 2017.
NCUA has posted an FAQ document about the rule, and said it will post a calculation tool on its website to help credit unions calculate their distributions.