First NCUSIF Dividend in Six Years Approved

ALEXANDRIA, Va. -- The NCUA Board yesterday approved the first dividend from the National CU Share Insurance Fund in six years--albeit a small one. The $52 million payout will amount to a 1% return on federally insured credit unions' 1% NCUSIF deposit and importantly, demonstrated that credit union's accounting for the 1% deposit as an asset is valid because of the potentially for earning a return on it, said NCUA's CFO Dennis Winans. NCUA will be sending out dividend checks to all federally insured credit unions this week. The average credit union, of $20 million in assets, will receive a $2,000 check, while a $1 billion credit union will receive $100,000. Winans had told the NCUA Board last month he hoped to be able to pay a dividend of as much as $110 million, but higher than expected growth among credit unions diluted the reserve level further, preventing the larger payout. The last NCUSIF dividend was paid in March 2001, for fiscal 2000, and was $99.5 million. It was the last of six straight years NCUA paid a dividend on the insurance fund.