August 2024 Share Insurance Fund Financial Highlights

MANAGEMENT OVERVIEW

August 31, 2024

Balance Sheets

Receivables from Asset Management Estates, Net is $68.2 million; it is comprised of natural person credit unions and corporate credit unions.

Insurance and Guarantee Program Liabilities related to Reserves are $212.0 million; $10.1 million is for specific reserves for natural person credit unions, and $201.9 million is for general reserves.

Statements of Net Cost

For the month ended August 31, 2024, the fund had a net income of $29.9 million. The fund recognized gross revenues of $49.7 million and total operating expenses of $19.8 million. The fund recognized an insurance loss reduction of $13.9 thousand during the month of August 2024.

BALANCE SHEETS

As of August 31, 2024 and 2023 (Dollars in Thousands)

ASSETS

INTRAGOVERNMENTAL ASSETS	August 2024	August 2023
Fund Balance with Treasury	$27,119	$26,571
Investments, Net - U.S. Treasury Securities	21,786,863	20,404,421
Accrued Interest Receivable - Investments	62,494	69,981
Accounts Receivable - Due from the NCUA Operating Fund	2,144	766
Advances and Prepayments	16,421	15,948
Total Intragovernmental Assets	21,895,041	20,517,687

WITH THE PUBLIC ASSETS	August 2024	August 2023
Advances and Prepayments	1,891	1,469
Receivables from Asset Management Estates (AMEs), Net*	68,240	69,897
Total with the Public Assets	70,131	71,366
TOTAL ASSETS	$21,965,172	$20,589,053

LIABILITIES

INTRAGOVERNMENTAL LIABILITIES	August 2024	August 2023
Accounts Payable - Due to the NCUA Operating Fund	28	-
Total Intragovernmental Liabilities	28	-

WITH THE PUBLIC LIABILITIES	August 2024	August 2023
Accounts Payable	3,026	2,369
Insurance and Guarantee Program Liabilities*	211,973	204,059
Other Liabilities	238	214
Total with the Public Liabilities	215,237	206,642
TOTAL LIABILITIES	$215,265	$206,642

NET POSITION	August 2024	August 2023
Cumulative Results of Operations	4,530,920	3,520,758
Contributed Capital	17,218,987	16,861,653
Total Net Position	21,749,907	20,382,411
TOTAL LIABILITIES AND NET POSITION	$21,965,172	$20,589,053

* Receivable from AMEs, Net and Insurance and Guarantee Program Liabilities lines are generally updated quarterly.

STATEMENTS OF NET COST

For the periods ended August 31, 2024 and 2023 (Dollars in Thousands)

GROSS COSTS	August 2024	Year-to-Date August 2024	Year-to-Date August 2023
Operating Expenses*	$19,751	$159,998	$153,136
Provision for Insurance Losses
Reserve Expense (Reduction)	(14)	1,964	20,002
AME Receivable Bad Debt Expense	-	(2,650)	(21,778)
Total Provision for Insurance Losses	(14)	(686)	(1,776)
Other Losses	-	-	9
Total Gross Costs	19,737	159,312	151,369

LESS EXCHANGE REVENUES	August 2024	Year-to-Date August 2024	Year-to-Date August 2023
Other Revenue	(8)	(447)	(190)
Total Exchange Revenues	(8)	(447)	(190)
TOTAL NET COST/(INCOME) OF OPERATIONS	19,729	158,865	151,179

LESS NON-EXCHANGE REVENUES	August 2024	Year-to-Date August 2024	Year-to-Date August 2023
Interest Revenue - Investments	(49,662)	(371,985)	(267,121)
Total Non-Exchange Revenues	(49,662)	(371,985)	(267,121)
TOTAL NET COST/(INCOME) INCLUDING NON-EXCHANGE REVENUES	$(29,933)	$(213,120)	$(115,942)

* National Credit Union Share Insurance Fund operating expenses are an allocation of total NCUA operating expenses, as determined by the overhead transfer rate set by the Board.

STATEMENTS OF CHANGES IN NET POSITION

For the periods ended August 31, 2024 and 2023 (Dollars in Thousands)

CUMULATIVE RESULTS OF OPERATIONS	August 2024	August 2023
Beginning Balances	$3,966,687	$3,258,998

Non-Exchange Revenue	August 2024	August 2023
Interest Revenue - Investments	371,985	267,121
Net Unrealized Gain/(Loss) - Investments	351,113	145,818
Net Income /(Cost) of Operations	(158,865)	(151,179)
Change in Cumulative Results of Operations	564,233	261,760
CUMULATIVE RESULTS OF OPERATIONS	4,530,920	3,520,758

CONTRIBUTED CAPITAL	August 2024	August 2023
Beginning Balances	$17,234,861	$16,916,436
Change in Contributed Capital	(15,874)	(54,783)
CONTRIBUTED CAPITAL	17,218,987	16,861,653
NET POSITION	$21,749,907	$20,382,411

NET POSITION BREAKDOWN	August 2024	August 2023
Credit Union Contributed Capital	$17,218,987	$16,861,653
Retained Earnings	5,347,106	5,040,214
Total Net Position Without Unrealized Gain/ (Loss)	22,566,093	21,901,867
Unrealized Gain/ (Loss) - Investments	(816,186)	(1,519,456)
NET POSITION	$21,749,907	$20,382,411

Gross Income
August 2023 - August 2024

The first chart, titled “Gross Income,” shows monthly income figures ranging from approximately $38.3 million in August 2023 to $49.7 million in August 2024, displaying a generally increasing trend.

Operating Expenses
August 2023 - August 2024

The second chart, “Operating Expenses”, presents monthly expenses from around $19.2 million in August 2023, increasing to $23.5 million in December 2023, and then dropping to $19.8 million in August 2024.

Insurance Loss Expense (Reduction)
August 2023 - August 2024

The third chart, “Insurance Loss Expense (Reduction)” from August 2023 to August 2024, shows mostly zero values except for, -$4.8 million, -$5.7 million, $5.9 million, and -$7.1 million in September 2023, December 2023, March 2024, and June 2024 respectively.

INVESTMENT PORTFOLIO ACTIVITY

August 31, 2024

I. INVESTMENT PORTFOLIO BALANCE AND MARKET VALUE (In Dollars)	Book Value	Market Value	Unrealized Gain or (Loss)	% Market to Book Value	Weighted Average Yield
Daily Treasury Account	$5,521,871,000	5,521,871,000	-	100.00%	5.27%
U.S. Treasury Notes	17,081,178,178	16,264,992,384	(816,185,794)	95.22%	1.74%
Total	$22,603,049,178	$21,786,863,384	$(816,185,794)	96.39%	2.60%

II. INVESTMENT PORTFOLIO SUMMARY	Last Month	Current Month	CY To Date
Investment Yield	2.55%	2.60%	2.48%
Investment Income	$48,872,760	$49,662,317	$371,984,991
Weighted Avg. Maturity in Days / (Years)	812 (2.22)	895 (2.45)	-

III. MONTHLY ACTIVITY FOR T-NOTES

Purchased	Amount	Maturity	Yield
8/15/2024	$1,100,000,000	various	3.80% to 3.85%

Maturity	Amount	Purchased	Yield
8/15/2024	$700,003,450	various	0.20% to 1.75%

IV. MATURITY SCHEDULE (par value in millions)

TOTAL PAR VALUE - $ 22,772

TOTAL UNREALIZED GAIN/(LOSS) - $ (816)

The upper chart is titled “Maturity Investment Balance (Millions)” and depicts investment balances across different time frames: Overnight, 1m-6m, 6m-yr, 1yr-2yrs, 2yrs-3yr, 3yr-4yr, 4yr-5yr, 5yr-6yrs, and 6yr-7yrs. The largest balance is in the Overnight” category at $5,522 million, with other categories showing balances ranging from $1,350 to $2,800 million. The “1m-6m” category has the lowest balance at $1,350 million.

The lower chart, titled “Unrealized Gain/(Loss) (Millions)”, corresponds to the same time frame as the upper chart. It shows values ranging from $10 million to -$268 million. The most significant unrealized loss is in the “3yr-4yr” time frame at -$268 million, and there’s no unrealized gain or loss for the “Overnight” category.

The balances in the statement above are preliminary and unaudited.

The information provided in the portfolio summary above is preliminary and unaudited.