ALEXANDRIA, Va. (4/19/13)--CAMEL code and corporate stabilization statistics reported during the April open board meeting "reflect an improving economy" and "a resilient credit union industry," National Credit Union Administration Chairman Debbie Matz said on Thursday at a one-item open board meeting.
NCUA Chief Financial Officer Mary Ann Woodson, left, presents the quarterly insurance fund statistics during Thursday's brief board meeting. (CUNA Photo)
The number of CAMEL 4 and 5 credit unions fell by 30 during the first quarter of 2013, NCUA Chief Financial Officer Mary Ann Woodson reported during the meeting. The March 2013 total of 339 CAMEL 4 and 5 credit unions represents an 8.1% decline from the total recorded at the end of 2012. This decline crossed every asset class, Woodson noted. CAMEL Code 4 and 5 credit unions held $16.8 billion in assets.
There were 1,558 CAMEL code 3 credit unions at the end of the first quarter of 2013, a decline of 13 from the previous quarter's total. Total shares and total assets held by these credit unions totaled $101.6 billion and $114.4 billion, respectively, at the end of the first quarter. Both of those numbers are improvements when compared to the $105.9 billion in shares and $119.3 billion in assets CAMEL code 3 credit unions held in the previous quarter.
NCUA staff reported that the National Credit Union Share Insurance Fund's (NCUSIF) equity ratio increased slightly to 1.31% as of March 31, 2013, but is expected to revert to 1.30% at the June 2013 update, at which time the capitalization deposit will be expensed. The ending reserve NCUSIF balance was $330 million, $13 million of which is allocated to specific credit unions.
The four failures that have occurred in the first quarter of 2013 cost the fund $75,000 in losses, Woodson said. This appears to be a slower credit union failure rate than the industry experienced in 2012, CUNA Deputy General Counsel Mary Dunn noted.
Altogether, CAMEL code 3, 4 and 5 credit unions held 12.6% of all credit union assets. "Assets at risk in credit unions with CAMEL codes 3, 4 and 5 have dropped for 10 straight quarters and with that, so has our level of exposure to potential losses," Matz said. "While we cannot predict the future with certainty, the growing strength of credit unions as a whole is a very positive sign," she added.
The total net position of the Temporary Corporate Credit Union Stabilization Fund was similar to the position reported in 2012's final quarter, and the Fund had $5.1 billion in outstanding borrowings with the U.S. Treasury as of March 31, 2013.
The quarterly financial report was the only item on Thursday's agenda. For more on the meeting, use the resource link.