More information about a more than $160 million dividend distribution to credit unions from the federal insurer of credit union savings – to be paid in the second quarter of the year (which starts next week) – is available online, the agency said Tuesday.
In a release, the National Credit Union Administration (NCUA) said the additional information about the $160.1 million dividend it declared last month includes details on the agency’s Equity Distribution Rule, 2018 Frequently Asked Questions (FAQs); accounting for the agency’s 2018 Equity Distribution; and 2018 Share Insurance Fund Equity Distribution Explanatory Dividend Statement.
Earlier this month (March 7), the agency announced the distribution, which will be made to federally insured credit unions that filed a quarterly call report for at least one reporting period in calendar year 2018, on a pro rata basis. The agency noted that the eligibility criteria for credit unions to receive an equity distribution is detailed in the final rule approved by the NCUA Board in February 2018 (and referred to in the notice issued Tuesday).
The equity distribution came about after the NCUA Board early this month determined that the equity level of the National Credit Union Share Insurance Fund (NCUSIF) was 1.39% – above the board-approved normal operating level (NOL) of 1.38%. To reduce the equity ratio to the approved NOL, a $160.1 million distribution is required, the agency said.
In 2018, the agency distributed nearly $736 million from the insurance fund after the board voted to close the Temporary Corporate Credit Union Stabilization Fund (TCCUSF, a fund set up in the wake of the housing crisis of 2009-10 to resolve troubled corporate credit unions, i.e., credit unions that serve other credit unions). Earlier in 2017, the board proposed closing the fund, merging its remaining assets into the credit union savings insurance fund (the NCUSIF), and distributing any funds left over in the insurance fund above the 1.39% NOL.