NCUA Board Reacts to Positive SIF Performance for Q1
Amid Chairman Harper’s leave of absence, the Board reveals its June meeting has been canceled.
The NCUA Board received good news about the Share Insurance Fund’s first-quarter performance during its fourth open meeting of 2024 on Wednesday.
In a briefing, the NCUA Board learned the Share Insurance Fund’s net income totaled $68.1 million and its net position totaled $21.6 billion for the first quarter of 2024. What’s more, the fund’s total assets increased to $21.6 billion at the end of the quarter from $21.0 billion at the end of the fourth quarter of 2023. And, no credit union failures took place during the first quarter.
The report presented to the Board also stated that NCUA staff projects the equity ratio for the Share Insurance Fund to be 1.24% on June 30, 2024.
“So why is the Share Insurance Fund ratio falling? As my colleague so ably explained, much of that downward move is due to projected growth of 5% in insured shares,” NCUA Board Vice Chairman Kyle S. Hauptman, who presided over the meeting in Chairman Todd Harper’s absence, stated.
Harper is currently taking a leave of absence to undergo and recover from back surgery. In a statement issued earlier this month, Harper said he expects to return to his full duties in July.
The first-quarter Share Insurance Fund report also included the following:
- The number of composite CAMELS code 3 credit unions decreased from 776 at the end of the fourth quarter of 2023 to 760 at the end of the first quarter of 2024. Assets for these credit unions increased from the fourth quarter of 2023 to $176.9 billion from $160.2 billion.
- The number of composite CAMELS codes 4 and 5 credit unions remained the same at 125 from the fourth quarter of 2023. Assets for these credit unions from the fourth quarter of 2023 increased to $7.0 billion from $5.5 billion.
The NCUA noted that the first-quarter figures are preliminary and unaudited.
“I am encouraged by the strong performance of the Share Insurance Fund,” NCUA Board Member Tanya F. Otsuka stated. “We continue to see a trend of fewer failing credit unions combined with higher yields, which have resulted in substantial net income for the Fund.”
The Board also revealed its June meeting has been canceled, with its next meeting set to take place on July 18, 2024.