The NCUA board of directors approved a $160.1 million equity distribution from the NCUA Share Insurance Fund that will be paid to eligible credit unions in the second quarter of 2019.
As previously reported, the normal operating level of the Share Insurance Fund at the end of 2018 was 1.38 percent, down from the previous level of 1.39 percent, set in 2017. To reduce the equity ratio to the approved normal operating level, a $160.1 million distribution is required.
“This is the second largest distribution to credit unions in the history of the Share Insurance Fund — only last year’s distribution was larger,” said NCUA Board Member Rick Metsger. “I am pleased that NCUA’s successful management of the NGN program and its successful lawsuits against the firms that sold toxic assets to corporate credit unions have made it possible for us to return funds to credit unions two years in a row.”
A financial institution that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in 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 agency’s board in February 2018.
“This Share Insurance Fund distribution is a reflection of how prudent credit unions were—and how responsible they continue to act—in the aftermath of the corporate credit union crisis,” said New York Credit Union Association President/CEO William J. Mellin. “I thank the NCUA board for restoring these funds to where they belong: the 5.8 million credit union members in New York and 115 million credit union members nationwide.”
The NCUA board will continue to monitor the health and risk exposure of the Share Insurance Fund, and evaluate the normal operating level each year to determine its appropriate level, based on an analysis of data and trends as they evolve annually.
For additional information on the Share Insurance Fund’s equity ratio and normal operating level, visit NCUA’s website.