AUGUST 2012 NUMBER 8

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HIGHLIGHTS

2 Chairman’s Corner To Cancel or Not to Cancel?

STABILIZATION FUND ASSESSMENT SET

2012 Assessment Drops Substantially from 2011 Level

3 Board Actions

4 Board Perspectives The CLF: An Important Tool in the Toolbox Sharing the Blame and the Credit

The NCUA Board set the 2012 assessment for the Temporary Corporate Credit Union Stabilization Fund (Stabilization Fund) at 9. 5 basis points. The 2012 assessment falls within the projected range of 8 to 11 basis points and represents a significant decline from the 25 basis points assessment for 2011.

n $337.4 million in 2009 n $999.6 million in 2010 n $1.956 billion in 2011 n $790.5 million in 2012

5 Office of Examination and Insurance Report Emergency Liquidity Planning And Access

8 Region V Report Mobile Banking Momentum

9 Office of Small Credit
Union Initiatives Report
Credit Union Grant
Applications Jump
77 Percent

Funds generated by the assessment, along
with borrowed funds from the U.S.
Treasury, will pay obligations due and
payable in 2012, primarily the principal and
interest on maturing Medium Term Notes
issued by corporate credit unions and
guaranteed by the Stabilization Fund. With
the 2012 assessment, federally insured credit
unions will have paid a total of nearly $4.1
billion of the total projected corporate
resolution expenses, as follows:
As required by law, the NCUA Board took
into consideration the potential impact of
the assessment on credit union earnings.
Call Report data from the first quarter
indicates continued improvement in
federally insured credit union earnings.
Credit unions reported a relatively strong
earnings ratio of 89 basis points, a figure
that excludes accruals some credit unions
reported on the projected 2012 National
Credit Union Share Insurance Fund
(NCUSIF) premium and Stabilization Fund
assessment. Under GAAP, credit unions

CONTINUED ON PAGE 6

STABILIZATION FUND PROJECTIONS (FIGURES IN BILLIONS)

10 Office of National
Examinations and
Supervision Report
New Office
Focuses on Largest
Credit Unions

STABILIZATION FUND

Range of Total Projected Assessments Less 2009, 2010, and 2011 Assessments Range of Post-2011 Remaining Projected Assessments Less 2012 Assessment Range of Post-2012 Remaining Projected Assessments