3 credit union failures cost share insurance fund $1.4 million at year-end

Three federally insured credit union failures cost the National Credit Union Share Insurance Fund (NCUSIF) approximately $1.4 million in losses at the end of the fourth quarter of 2023, according to a report issued Thursday.

The quarterly report of credit unions’ federal deposit insurer, provided during Thursday’s open meeting of the National Credit Union Administration (NCUA) Board, also showed a net decrease of seven in the number of credit unions receiving CAMELS ratings worse than 2.

The agency’s chief financial officer reported that during the fourth quarter:

  • The number of composite CAMELS code 3 credit unions decreased from 777 to 776 at the end of the fourth quarter. Assets for these credit unions increased from the third quarter to $160.2 billion from $131.7 billion.
  • The number of composite CAMELS codes 4 and 5 credit unions decreased from 131 to 125 at the end of the fourth quarter. Assets for these credit unions increased from $5.4 billion to $5.5 billion.

The NCUSIF also ended 2023 with an equity ratio of 1.3%, up from the June ratio of 1.27% and 30 basis points below the fund’s “normal operating level” of 1.33%.

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