At its May board of directors meeting held on Thursday via live webcast, the NCUA board of directors was briefed on the performance of the National Credit Union Share Insurance Fund, through the first quarter of 2022.

The Share Insurance Fund reported a net income of $54.4 million and a net position of $20.4 billion for the first quarter of 2022. The Fund’s total assets decreased to $20.6 billion at the end of the quarter from $20.7 billion at the end of the fourth quarter of 2021.

“Quarterly net income rose by approximately $42 million due to the continued reduction of expected losses associated with the remaining legacy assets of the Corporate System Resolution Program,” said Todd Harper, NCUA chairman. “That is positive news. We are now seeing a normalization of the Share Insurance Fund’s performance to what it was before the Board decided to fold the Temporary Corporate Credit Union Stabilization Fund into the Share Insurance Fund.”

The quarterly report also included an equity ratio projection. For June 30, 2022, NCUA staff projects the equity ratio for the Share Insurance Fund will be 1.25%.

“Although the equity ratio sits below an ideal level, it remains relatively stable,” Harper said. “Nevertheless, we continue to see a slow, steady decline of the equity ratio due to continued elevated insured share growth and low interest rates, at least from a historical perspective. As such, the NCUA Board must continue to monitor the Share Insurance Fund’s performance and remain ready to act. Such monitoring includes assessing the effects of the changing interest-rate environment on the Fund’s portfolio.”

The full results of the meeting can be accessed on the NCUA website. The next board of directors meeting is at 10 a.m. on June 16 and can be livestreamed at ncua.gov.