The National Credit Union Administration said Monday that its National Credit Union Share Insurance Fund lost $225 million in July, its single-largest monthly loss ever.
The loss included more than $200 million stemming from the failures of two California credit unions: Cal State 9 Credit Union in Concord and Sterlent Credit Union in Pleasanton. Patelco Credit Union in San Francisco purchased their remnants, and the NCUA assumed the failed assets, mostly real estate loans. The fund had to charge off a $100 million loan it had made to Cal State 9.
The fund's reserve ratio now sits at 1.22%, below the NCUA's minimum level. The agency projects that the ratio will rise by yearend, though several large credit unions have reported big losses in recent months and could be in need of emergency loans.
If the ratio ends the year under 1.25%, the NCUA is required to charge credit unions a premium to replenish the reserves. The agency has not charged a premium since 1991.
