The NCUA board Thursday approved a $160.1 million equity distribution from the National Credit Union Share Insurance Fund that will be paid to eligible credit unions in the second quarter of 2019. This is the second such distribution from the NCUA, the first, in the amount of $735.7 million, went to credit unions starting in July 2018.
CUNA was the only national credit union trade association to support NCUA closing the Temporary Corporate Credit Union Stabilization Fund in 2017, which led to last year’s distributions.
“We commend NCUA for its prudent stewardship of credit union funds and for recognizing that this money could be best put to use serving credit union members around the country,” said CUNA President/CEO Jim Nussle. “CUNA was the only national credit union trade association advocating for distributions because we know credit unions will put these funds to work for their members.”
According to NCUA, a financial institution that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in calendar year 2018 will be eligible for a pro rata distribution.
The eligibility criteria for credit unions to receive an equity distribution is detailed in a final rule approved by the NCUA Board in February 2018.
Based on the total of insured shares reported in the fourth quarter Call Reports, the equity ratio of the Share Insurance Fund was 1.39%. To reduce the equity ratio to the approved normal operating level, a $160.1 million distribution is required.
NCUA said the board will continue to monitor the health and risk exposure of the Share Insurance Fund and will evaluate the normal operating level each year to determine its appropriate level, based on an analysis of data and trends as they evolve overtime.
Additional information on the share insurance fund’s equity ratio and normal operating level is available on the NCUA’s website.