Board Actions March 2012
WITH FEWER LOSSES, INSURANCE FUND ENDS 2011
IN STRONGER POSITION
The NCUA Board convened its second open meeting of 2012
at the agency’s headquarters March 15, received a quarterly
insurance fund report, and unanimously approved NCUA’s
Diversity and Inclusion Strategic Plan and technical
amendments on NCUA’s rules on fair housing, flood
insurance, and agency structure.
in the projected NCUSIF premium range for 2012 down to 0–
6 basis points.
Insurance Fund Shows Steady
Improvements in 2011
Credit unions will experience a reduction in future
assessments because NCUA has transferred $278.6 million in
equity from the National Credit Union Share Insurance Fund
(NCUSIF) to the Temporary Corporate Credit Union
Stabilization Fund (Stabilization Fund). Before the transfer,
the NCUSIF equity ratio had risen to 1.32 percent. The
Federal Credit Union Act requires NCUA to transfer any
NCUSIF equity above the normal operating level of 1.30
percent at year-end as long as the Stabilization Fund has
outstanding borrowings from the U.S. Treasury.
“The effective management of the NCUSIF is one of our top
priorities,” said NCUA Board Chairman Debbie Matz. “The
NCUSIF’s steady improvements during 2011 demonstrate that
NCUA has been performing this job very well. The equity ratio
rose, the total number and assets of at-risk credit unions fell,
and the NCUSIF portfolio grew. After applying our traditional
methodology, we have also decreased NCUSIF reserves.
Moreover, NCUA will apply the year-end reallocation from the
NCUSIF to lower Corporate Stabilization Fund assessments.”
Other positive, year-over-year trends contained in the 2011
year-end NCUSIF report presented to the Board include:
; Credit union failures dropped by more than 40 percent to
16 failures from 28 failures.
;The total amount of losses associated with credit
union failures dropped 75 percent to $55 million from
; The total number of CAMEL code 3, 4 and 5 credit unions
dropped to 2,150 from 2,192.
; The total assets of CAMEL code 4 and 5 credit unions fell
32 percent to $29.4 billion from $43.3 billion.
; The total assets of CAMEL code 3 credit unions decreased
9 percent to $142.5 billion from $156.7 billion.
Finally, the Chief Financial Officer reported on the
Stabilization Fund’s operations based on preliminary and
unaudited information. The condition of the Stabilization
Fund remained stable in 2011. During 2011, the Total Net
Position of the Stabilization Fund improved by $2.2 billion.
The Stabilization Fund continues to have $3.5 billion in
outstanding borrowings with the U.S. Treasury.
The NCUSIF ended 2011 with an equity ratio of 1.30 percent
after the year-end transfer from the NCUSIF to the
Stabilization Fund. This equity ratio is calculated on an
insured share base of $795.3 billion. At year-end 2010, the
NCUSIF equity ratio stood at 1.28 percent on an insured
share base of $757.9 billion. The growth in credit union
insured shares for 2011 was nearly 5 percent. The value of the
NCUSIF portfolio grew about 4 percent during 2011 to close
the year with a value of $10.7 billion.
On the strength of these positive trends and other factors,
NCUA’s robust reserving methodology allowed for a
reduction in the NCUSIF’s reserves by 51 percent to $606.6
million at year-end 2011 from $1.2 billion at year-end 2010.
In light of the steady improvements, NCUA did not collect
an NCUSIF premium in 2011. At the open Board meeting in
November 2011, Chairman Matz also announced a reduction
Strategic Plan Advances NCUA Workforce
and Supplier Diversity
NCUA’s newly adopted Diversity and Inclusion Strategic Plan
for 2012–2016 complies both with President Obama’s
Executive Order 13583, which aims to promote diversity and
inclusion throughout the federal government workforce, as
well as the supplier diversity requirements established by
section 342 of the Dodd-Frank Wall Street Reform and
Consumer Protection Act.
“In response to the Dodd-Frank Act, we opened the Office of
Minority and Women Inclusion a little over a year ago, and
now we have delivered a strategic plan that will further boost
our efforts to build and sustain a diverse workforce,” said
Chairman Matz. “The plan brings into sharper focus our
ongoing efforts to advance equal opportunity, diversity, and
inclusion within NCUA.”
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