October 2024 Operating Fund Financial Highlights

MANAGEMENT OVERVIEW

October 31, 2024

Balance Sheets

Cash and cash equivalents had a month-end balance of approximately $139.4 million. The balance decreased by $11.3 million for the month primarily due to cash disbursements for operating expenses and capital expenditures. The cash position is considered sufficient to cover current and future budgetary obligations of the Fund through April 2025, at which time the Fund will collect the 2025 operating fees from its credit union members.

Amount due from National Credit Union Share Insurance Fund of $89.2 thousand represents the receivable for expenses paid by the Operating Fund.

Other accounts receivable, net had a month-end balance of $173.4 thousand. Its balance decreased by $496.8 thousand from prior month.

Accounts payable are trade, relocation and inter-agency payables. The balance increased by $1.1 million for the month primarily due to vendor/trade and overhead transfer payables.

Accrued wages and benefits are earned by NCUA staff, but remain unpaid at month-end.

Accrued annual leave is leave earned by NCUA staff, but not yet used.

Statements of Revenues, Expenses, and Changes in Fund Balance

Expenses in excess of revenues totaled $0.1 thousand for the month. Operating fee revenue reflects one-twelfth of the 2024 Operating Fees. Expenses, net are after the overhead transfer rate adjustment that allocates a portion of expenses to the Share Insurance Fund.

Statements of Cash Flows

The cash position decreased $11.3 million from prior month. In the current month, $11.0 million was used in operating activities, $269.9 thousand was used in investing activities, and there were no financing activities.

BALANCE SHEETS

As of October 31, 2024 and 2023 (Dollars in thousands)

ASSETS	October 2024	October 2023
Cash and cash equivalents	$139,400	$136,623
Due from National Credit Union Share Insurance Fund	89	-
Employee advances	13	-
Other accounts receivable, net	173	166
Prepaid expenses and other assets	9,071	7,673
Operating lease right-of-use assets	7,223	2,021
Fixed assets¹	31,055	34,410
Intangible assets²	19,633	22,893
TOTAL ASSETS	$206,657	$203,786

LIABILITIES AND FUND BALANCE

LIABILITIES	October 2024	October 2023
Accounts payable and accrued other liabilities	$24,864	$24,129
Finance lease liabilities	131	159
Operating lease liabilities	7,548	2,021
Accrued wages and benefits	9,491	10,121
Accrued FECA and unemployment benefits	294	436
Accrued actuarial FECA benefits	3,244	3,664
Deferred revenue³	23,058	19,121
Accrued annual leave	25,490	24,965
TOTAL LIABILITIES	94,120	84,616
FUND BALANCE	112,537	119,170
TOTAL LIABILITIES AND FUND BALANCE	$206,657	$203,786

STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN FUND BALANCE

For the periods ended October 31, 2024 and 2023 (Dollars in thousands)

REVENUES	October 2024	Year-to-Date October 2024	Year-to-Date October 2023
Operating fees	$11,529	$115,291	$95,607
Interest	568	6,147	5,814
Other	47	443	322
Total Revenues	12,144	121,881	101,743

EXPENSES, NET⁴	October 2024	Year-to-Date October 2024	Year-to-Date October 2023
Employee wages and benefits	$9,438	$91,361	$85,255
Travel	469	5,588	5,037
Rent, communications, and utilities	173	1,725	1,787
Contracted services	1,661	21,006	18,977
Depreciation and amortization	314	3,142	3,047
Administrative	89	1,410	1,609
Total Expenses, Net	$12,144	$124,232	$115,712
EXCESS OF REVENUES OVER / (UNDER) EXPENSES	-	(2,351)	(13,969)
FUND BALANCE—Beginning of period	112,537	114,888	133,139
FUND BALANCE—End of period	$112,537	$112,537	$119,170

STATEMENTS OF CASH FLOWS

For the periods ended October 31, 2024 and 2023 (Dollars in thousands)

CASH FLOWS FROM OPERATING ACTIVITIES	October 2024	Year-to-Date October 2024	Year-to-Date October 2023
Excess of revenues over (under) expenses	$-	$(2,351)	$(13,969)
Adjustments to reconcile excess of revenues over (under) expenses to net cash provided by operating activities before allocation to the NCUSIF:
Depreciation and amortization	833	8,331	8,050
Noncash operating lease expense	-	267	308
(Increase) decrease in assets:
Due from National Credit Union Share Insurance Fund	(89)	1,558	19
Employee advances	-	(13)	-
Other accounts receivable, net	497	432	188
Prepaid expenses and other assets	(947)	(3,376)	(3,003)
(Decrease) increase in liabilities:
Accounts payable	1,127	3,220	3,527
Operating lease liabilities	-	(42)	(325)
Accrued wages and benefits	(151)	(6,095)	(1,525)
Accrued FECA and unemployment benefits	-	126	253
Accrued actuarial FECA benefits	-	(420)	381
Deferred revenue	(11,529)	23,058	19,121
Accrued annual leave	-	1,280	1,853
Accrued employee travel	(734)	(276)	(250)
Net Cash Provided by/(Used in) Operating Activities	(10,993)	25,699	14,628
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of fixed and intangible assets	(270)	(2,450)	(4,984)
Net Cash Provided by/(Used in) Investing Activities	(270)	(2,450)	(4,984)
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments under finance lease liabilities	-	(36)	(32)
Net Cash Provided by/(Used in) Financing Activities	-	(36)	(32)
NET INCREASE /(DECREASE) IN CASH AND CASH EQUIVALENTS	(11,263)	23,213	9,612
CASH AND CASH EQUIVALENTS—Beginning of period	150,663	116,187	127,011
CASH AND CASH EQUIVALENTS—End of period	$139,400	$139,400	$136,623
SUPPLEMENTAL DISCLOSURE OF NONCASH ACTIVITIES
Recognition of operating lease right-of-use assets	$5,558	$5,558	$2,021
Retirement of fully depreciated assets	$-	$1,192	$327
Acquisition of equipment under finance lease	$-	$(21)	$(31)

The balances in the statement above are preliminary and unaudited.

¹ Net of accumulated depreciation of $47,195 and $43,776 as of October 31, 2024 and 2023, respectively.

² Net of accumulated amortization of $39,397 and $34,793 as of October 31, 2024 and 2023, respectively.

³ The Operating Fund recognizes operating fee revenue ratably over the calendar year. The deferred revenue is the remaining amount to be recognized over the remainder of the calendar year.

⁴ Operating Fund expenses are the total NCUA operating expenses reduced by the Share Insurance Fund allocation as determined by the overhead transfer rate.