During its April board meeting, NCUA reported that the number of credit unions that are carrying a CAMEL code 4 or 5 has slowly been on the increase since 2000, but that it presents no threat to the insurance fund. There were 267 CAMEL code 4 or 5 credit unions as of mid-April, the agency said, down from 280 at year-end 2005, according to NCUA's CFO, Dennis Winans. To date in 2006 there have been four credit union failures.
Nevertheless, Winans said that improved investment returns have actually boosted gross income on the National Credit Union Share Insurance Fund to $56.8 million during the first quarter, up from $35 million one year earlier. The operating expense was $18.8 million, while net income was $37.7 million.
Winans said NCUA has allocated just $315,000 during the first quarter for its provision for credit union losses, down from the $7.5 million allocated during the same period one year earlier.
The agency is projecting that its year-end equity ratio will be approximately 1.27%, meaning it will fall under the 1.30% equity ratio after which a dividend is paid to credit unions.
