BOARD ACTIONS (FROM PAGE 3)
NCUSIF and Stabilization Fund:
Financial Conditions Continue
Steady Improvement
The National Credit Union Share
Insurance Fund (NCUSIF) equity ratio
remained at 1.32 percent in November,
based on an insured share base of
$782.4 billion as of June 30. NCUA
will recalculate the equity ratio at year-end based upon the insured share base
as of Dec. 31.
During November, the NCUSIF reserve
balance stayed constant at $871.6
million. November net income was $7.3
million, and year-to-date net income
was $375 million. As of Nov. 30, 14
credit unions have failed in 2011,
costing the NCUSIF $45.7 million.
At November’s end, 399 FICUs with
assets of $31.2 billion and shares of
$28.0 billion had CAMEL code 4 or 5
designations. Additionally, 1,735
CAMEL code 3 credit unions had assets
of $142.2 billion and shares of $126.2
billion. Overall, approximately 17.3
percent of all credit union assets were in
CAMEL code 3, 4, or 5 institutions. The
percentage of assets in CAMEL code 1
and 2 credit unions has remained steady
at 82.7 percent since Oct. 31.
The Temporary Corporate Credit Union
Stabilization Fund (Stabilization Fund)
total liabilities and net position stood at
approximately $5.9 billion at
November’s end, slightly higher than
$5.89 billion at October’s end. The
Stabilization Fund continues to hold
$3.5 billion in U.S. Treasury borrowings.
As most key measurements have shown
no significant changes from month-to-month, the Board accepted a staff
recommendation to return to a quarterly
schedule of NCUSIF and Stabilization
Fund presentations. NCUA will,
however, continue to post monthly
financial highlights at
www.ncua.gov.
Financial data reported in 2011 are
preliminary and unaudited.
Board Reduces 2012 Budget
for NCUA Guaranteed Note
Securities Management
and Oversight
The NCUA Board approved a
proposed 2012 budget of $7.7 million
for NCUA Guaranteed Note (NGN)
securities management and oversight, a
37 percent decrease from the
preliminary budget estimate of $12.2
million presented at the August special
open Board meeting.
The approved budget covers costs
incurred by NCUA offices in support
of the ongoing NGN program, which
provided $28.3 billion in liquidity to
stabilize the corporate credit union
system. The budget covers the costs of
overseeing securities valuations on a
regular basis, including modeling cash
flows and credit losses, processing
complex accounting transactions,
preparing regular financial reports,
and supporting year-end financial
statement audits.
The Stabilization Fund will cover the
expenses of NGN securities
management and oversight. In
December 2011, NCUA also released a
website detailing the performance of
the NGNs and their underlying legacy
assets on a semiannual basis.
NCUA’s Strategic Plan Updated
The Board approved an updated 2011–
2014 Strategic Plan, available at
www.ncua.gov. The updated plan
incorporates changes required by
passage of the 2011 Government
Performance and Results Act
Modernization Act. Changes include:
; Shortening the effective plan period
from six to four years;
; Aligning future plan time spans to
coincide with presidential election
cycles; and
;Requiring Strategic Plan updates
every two years, rather than every
three years.
To eliminate redundancy, the updated
NCUA Strategic Plan combines two
goals into one and adjusts and aligns
the associated performance indicators
within the consolidated goal.
As revised, NCUA’s 2011–2014
Strategic Plan goals are:
; Ensure a safe, sound, and healthy
credit union system;
; Promote credit union access to all
eligible persons;
;Further develop a regulatory
environment that is transparent and
effective, with clearly articulated and
easily understood regulations; and
;Cultivate an environment that
fosters a diverse, well-trained and
motivated staff.
Three High-Performance
Goals Set
The Board also approved NCUA’s
2012 Annual Performance Budget,
which is the agency’s annual plan.
Based on the 2011–2014 Strategic Plan
goals, the plan outlines NCUA
objectives, strategies, and initiatives.
The 2012 Annual Performance
Budget—available at
www.ncua.gov—
sets three measurable high-priority
performance goals for 2012:
; Monitor and control risk in natural-person credit unions, as measured
by net worth, long-term assets ratio,
potential loss coverage ratio, and a
reduction in NCUSIF losses;
; Continue to stabilize the corporate
credit union system, as measured by
the corporate credit union system
capital ratio requirements; and
; Ensure natural-person credit union
members of bridge corporate credit
unions transition from the bridge
corporates without disruption of
member services, as measured by the
percentage of credit unions that
successfully transition.
CONTINUED ON PAGE 9
