Share Insurance Fund Reports Strong Performance in the Third Quarter

ALEXANDRIA, Va. (Nov. 17, 2022) – The National Credit Union Administration Board held its tenth open meeting—and third in person—of 2022. During the meeting, the NCUA’s Chief Financial Officer briefed the NCUA Board on the performance of the National Credit Union Share Insurance Fund for the quarter ending on September 30, 2022.

“The Share Insurance Fund performed well in the third quarter,” NCUA Chairman Todd M. Harper said. “The changes in the interest rate environment over the last several months increased the income and earnings of the Fund.”

The Share Insurance Fund reported a net income of $26.2 million, $20.2 billion in assets, and $73.7 million in total income for the third quarter of 2022. The equity ratio for the Fund remains at 1.26 percent.

Other news of note from the meeting includes a 2.6% increase in credit unions with a CAMELS Score of 4 and 5, having increased slightly from 117 credit unions to 120 credit unions, with combined assets of $3.8 billion. There were no credit unions over $500 billion with scores in this category. The number of credit unions with a CAMELS score of 3 increased 1.7% to 768 credit unions, with assets totaling $47.9 billion.

Chairman Harper stated the Board will continue to monitor these trends and take action if needed to protect the SIF and credit union members.

As of the end of the 3^rd quarter, four credit unions have failed this year costing the SIF $7 million in losses. Three failed due to fraud.

Comments/questions from the Board that are of interest.

• With the increase in credit unions with a CAMELS score of 3 to 5, Chairman Harper stated more onsite visits will need to take place in 2023 and beyond. He argued that this justifies the increases in travel expenses in the proposed NCUA budget.
• Vice Chairman Hauptman asked if the addition of the Sensitivity component to the CAMELS score has caused an increase in scores of 3 to 5. NCUA CFO Eugene Schied stated that there are many factors leading to the increase, but there is no evidence to suggest the increase is owed to the Sensitivity component.
• Board Member Hood asked if third-party vendors had a role in the failures of the three credit unions that failed due to fraud. Schied stated that to his knowledge, this was not the case. Mr. Hood asked that NCUA staff look into this matter to be sure.

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