The Central Liquidity Facility's membership, assets and stock dividend rate grew in the first quarter of 2014, the NCUA announced on Friday.

CLF membership grew to 218 credit unions from 129 at the end of the first quarter of 2013. Assets increased to $180 million from $115 million at the end of the first quarter of 2013. Retained earnings reached $27.8 million from $27.4 million in the same time period while the maximum legal borrowing authority grew from $2.4 billion to $3.8 billion in the first quarter of 2014.

 The stock dividend rate for the CLF went from the .10% rate paid quarterly since the fourth quarter of 2012 to .25% in the first quarter of 2014, the agency said in its announcement.

“CLF management expects moderate growth in both membership and portfolio earnings during 2014, with a strong likelihood the 0.25 percent rate will continue,” the announcement said.

“It's most encouraging to see the CLF performing well. The CLF is a reliable source of emergency liquidity, which is important to the stability of the credit union system,” NCUA Board Chairman Debbie Matz said. “The 69% increase in credit union participation during the last year has also resulted in more CLF borrowing capacity to meet emergency liquidity needs.”

According to the NCUA, “The CLF's steady growth in membership and assets has enabled it to expand its earnings base and borrowing capacity, increase retained earnings and pay the higher dividend rate.”

The NCUA Board approved a final rule at the agency's board meeting last October that required federally insured credit unions with more than $50 million in assets to ensure access to an emergency liquidity source.

CLF membership is voluntary and open to all credit unions that purchase a prescribed amount of CLF stock.

As of March 31, 2014, credit unions with assets greater than $250 million must have established access to at least one contingent federal liquidity source, either the CLF or the Federal Reserve's Discount Window or both, the NCUA said.

Credit unions with assets between $50 million and $250 million must have a contingency funding plan for meeting emergency liquidity needs, and credit unions with assets of less than $50 million must have a policy for managing liquidity, the agency said.