The NCUSIF Dividend Check’s Almost in the Mail

ALEXANDRIA, Va. -- NCUA said yesterday it plans to pay federally insured credit unions their first dividend on the National CU Share Insurance Fund in four years, a payment of as much as $110 million. The payout will be possible because the credit union deposit insurance fund ended 2006 with excess reserves, an equity ratio of 1.31 (dollars reserved per $100 of insured deposits), higher than the federally mandated 1.25, according to Dennis Winans, chief financial officer for NCUA. As a result, he will propose to the NCUA Board at next month's meeting a dividend of between $90 million and $110 million, he said. That amount to a 2% return on each federally insured credit union's 1% NCUSIF deposit. Once the Board approves the dividend--as it is expected to do--the checks will be in the mail within 10 days, said Winans.