NCUSIF at 1.28% in June, 1.3% expected by year-end; separation program costs pegged at $13.6 million in 2025

The fund that insures member deposits, or “shares,” in credit unions had an equity ratio of 1.28% of insured shares as of June 30, down from 1.3% at year-end 2024, according to a report Thursday.

The National Credit Union Administration (NCUA), in a report released for last week’s open NCUA Board meeting, said the National Credit Union Share Insurance Fund (NCUSIF) is expected to end 2025 at an equity ratio of 1.3%, 3 basis points below its target level of 1.33%.

NCUSIF-insured shares totaled $1.831 trillion as of June 30, the report shows, up 2.9% from year-end 2024.

During the second quarter of 2025, four credit union failures cost the fund a total of $17 million, the report shows. Staff said the fund could withstand a loss of $1.4 billion without dropping below an equity ratio of 1.2%. If the fund is below 1.2%, or projected to go below that within six months, federal law requires that the NCUA Board assess a premium or develop a fund restoration plan.

In other data, Thursday’s report shows that as of June 30, the number of credit unions with CAMELS codes of 4 or 5 totaled 122 (down from 129); code 4 and 5 credit unions held $13 billion in shares at mid-year, down 27.75% from $18 billion in the first quarter. The total number of CAMELS 3 credit unions had dropped from 679 to 667; CAMELS code 3 credit unions held $168.2 billion in shares as of June 30, up 15.29% from $145.9 billion in the first quarter.

In other figures, staff said the NCUA expects to spend a total of $13.6 million for staff departures under its Voluntary Separation Program (initiated in accordance with the Trump administration’s federal workforce reduction plans): $8.8 million for paying out annual leave previously earned by separating employees; $3.5 million for incentive payments; and $1.3 million for administrative and other costs for separating employees.

The agency said these additional costs are offset by other savings in payroll, travel, and contracting. It said the NCUA projects it will come in $7 million under budget for 2025.

NCUA Briefed on Share Insurance Fund