Share insurance fund ends Q1 with $20.4B net position

The NCUA board heard a quarterly update on the National Credit Union Share Insurance Fund at today’s board meeting. Agency staff reported a net income of $54.4 million and a net position of $20.4 billion for the quarter ending March 31.

NCUA staff also projected the equity ratio for the Share Insurance Fund will be 1.25% on June 30. The ratio stood at 1.26% on Dec. 31, 2021.

NCUA Chairman Todd Harper noted the equity ratio remains “relatively stable” despite being “below an ideal level” and said credit unions’ ability to manage interest rate risk will remain a crucial factor going forward.

Other first quarter highlights:

• The number of composite CAMEL codes 4 and 5 credit unions decreased from 129 to 125 at the end of the first quarter of 2022. Assets for these credit unions decreased from the fourth quarter of 2021 to the first quarter of 2022, to $3.8 billion from $8.8 billion.
• The number of composite CAMEL code 3 credit unions decreased from 752 to 751 at the end of the first quarter of 2022. Assets for these credit unions increased from the fourth quarter of 2021, to $43.8 billion from $43.0 billion.

The board also discussed its recent Letter to Credit Unions (22-CU-07) on Distributed Ledger Technologies.