ALEXANDRIA, Va. (2/20/15)--The National Credit Union Share Insurance Fund (NCUSIF) had an equity ratio of 1.29% at the end of 2014, according to National Credit Union Administration Chief Financial Officer Rendell Jones.
Jones provided the update at the agency's monthly board meeting Thursday and noted the fund saw a net income of $75.9 million in 2014.
"With an equity ratio of almost 1.3%, an insurance fund premium is very unlikely for at least the next year or so," said CUNA Chief Policy Officer Bill Hampel. "Beyond that, a premium remains unlikely so long as interest rates rise enough to boost earning on the fund's investments."
According to Jones, the net position of the share insurance fund remained steady at $11.8 billion at the end of 2014.
Jones also pointed out that the number of CAMEL 4 and 5 rated credit unions dropped to 276 at the end of 2014, compared with 307 at the end of 2013, a drop of 10.1%. The percent of total insured shares in those credit unions was 1.13% at the end of 2014, down from 1.4% at the end of 2013.
The amount of assets in CAMEL 1 and 2 credit unions hit 90.4% at the end of 2014, which according to NCUA Chair Debbie Matz, is the highest level in the last 10 years.
There were 15 involuntary liquidations and assisted mergers during 2014, compared with 17 credit union failures in 2013.
The total amount of losses associated with failures in 2014 was $40.4 million, a decrease of 39.5% from $66.8 million the previous year.
According to the NCUA, fraud was a contributing factor in seven of these failures, at a cost of $36.5 million during 2014.