According to the NCUA's Board Action Memorandum, the agency will apply $650 million toward payment on outstanding borrowings to the U.S. Treasury, which will reduce the total amount outstanding to not more than $4.075 billion.

The payment will increase the NCUA's available credit line to $1.925 billion which would cover unexpected contingencies for both corporate stabilization and the National Credit Union Share Insurance Fund.

After applying the 2013 assessment, the NCUA estimates the remaining corporate stabilization assessments range from $900 million to $3.2 billion.

Larry Fazio, director of the Office of Examination and Insurance, told Chairman Debbie Matz and Board Member Michael Fryzel that as the range decreases and narrows, the NCUA “could get to a point where it looks like the performance has improved enough that future boards my choose to slow down or discontinue assessments for a time.”

However, Fazio said, that decision will take into account remaining Treasury borrowings and the overall still-negative net position of the corporate stabilization fund.

The assessment will drop the aggregate return on average assets for federally insured credit unions from 0.83% to 0.76%, and cause 328 of them to become unprofitable. Aggregate net worth will drop from 10.31% to 10.25%.

Additionally, 31 credit unions will see their net worth drop below 7%, subjecting them to the earnings retention requirement of Prompt Corrective Action. Eight credit unions will see their net worth drop below 6%, forcing them to file a net worth restoration plan. However, no credit union will drop below 2% net worth, the NCUA said.

Although the NCUA will invoice the assessment in September to be due by mid-October, credit unions should expense the assessment in July and report the entire expense on their Sept. 30 Call Report, the NCUA said in its board memo.