More than 5,500 eligible institutions will receive dividends totaling $160.1 million from the National Credit Union Share Insurance Fund starting this week, according to NCUA. Credit unions have received statements in the mail indicating the amounts they will receive.
“We thank NCUA for its prudent stewardship of credit union funds and for working quickly to get this money into the hands of credit unions where it can be put to work for members,” said CUNA President/CEO Jim Nussle. “CUNA was the only national trade association to advocate that NCUA close the Temporary Corporate Credit Union Stabilization Fund for this reason, and the results have been more than $900 million in distributions paid to credit unions since October 2017.”
The NCUA board approved the $160.1 million in March after the share insurance fund reported an equity ratio of 1.39% at the end of 2018. This amount, above the board-approved normal operating level of 1.38%, triggered the distribution.
Institutions that filed a call report as a federally insured credit union for at least one reporting period in 2018 are eligible for the pro rata distribution.
This is the second such distribution from the share insurance fund, the previous one came in the amount of $735.7 million when NCUA merged the share insurance fund with the Temporary Corporate Credit Union Stabilization Fund.
According to NCUA, the board will continue to monitor the health and risk exposure of the share insurance fund and will evaluate the normal operating level annually to determine its appropriate level, based on an analysis of data and trends.
Additional information on the share insurance fund’s equity ratio and normal operating level is available on the NCUA’s website.