May 2024 Share Insurance Fund Financial Highlights

MANAGEMENT OVERVIEW

May 31, 2024

Balance Sheets

Receivables from Asset Management Estates, Net is $69.8 million; it is comprised of natural person credit unions and corporate credit unions.

Insurance and Guarantee Program Liabilities related to Reserves are $217.5 million; $7.3 million is for specific reserves for natural person credit unions, and $210.2 million is for general reserves.

Statements of Net Cost

For the month ended May 31, 2024, the fund had a net income of $26.6 million. The fund recognized gross revenues of $47.8 million and total operating expenses of $21.2 million. The fund did not recognize any insurance loss expense during the month of May 2024.

BALANCE SHEETS

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

ASSETS

INTRAGOVERNMENTAL ASSETS	May 2024	May 2023
Fund Balance with Treasury	$27,066	$26,285
Investments, Net - U.S. Treasury Securities	21,247,498	20,479,632
Accrued Interest Receivable - Investments	56,943	66,709
Accounts Receivable - Due from the NCUA Operating Fund	-	448
Advances and Prepayments	16,473	15,471
Total Intragovernmental Assets	21,347,980	20,588,545

WITH THE PUBLIC ASSETS	May 2024	May 2023
General Property, Plant, and Equipment, Net	50	-
Advances and Prepayments	1,067	1,069
Receivables from Asset Management Estates (AMEs), Net*	69,771	77,772
Total with the Public Assets	70,888	78,841
TOTAL ASSETS	$21,418,868	$20,667,386

LIABILITIES

INTRAGOVERNMENTAL LIABILITIES	May 2024	May 2023
Accounts Payable - Due to the NCUA Operating Fund	216	46
Total Intragovernmental Liabilities	216	46

WITH THE PUBLIC LIABILITIES	May 2024	May 2023
Accounts Payable	3,713	2,564
Insurance and Guarantee Program Liabilities*	217,513	196,778
Other Liabilities	45	416
Total with the Public Liabilities	221,271	199,758
TOTAL LIABILITIES	$221,487	$199,804

NET POSITION	May 2024	May 2023
Cumulative Results of Operations	3,980,689	3,609,295
Contributed Capital	17,216,692	16,858,287
Total Net Position	21,197,381	20,467,582
TOTAL LIABILITIES AND NET POSITION	$21,418,868	$20,667,386

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

STATEMENTS OF NET COST

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

GROSS COSTS	May 2024	Year-to-Date May 2024	Year-to-Date May 2023
Operating Expenses*	$21,224	$100,442	$95,085
Provision for Insurance Losses
Reserve Expense (Reduction)	-	8,114	12,240
AME Receivable Bad Debt Expense	-	(2,212)	(20,425)
Total Provision for Insurance Losses	-	5,902	(8,185)
Other Losses	-	-	9
Total Gross Costs	21,224	106,344	86,909

LESS EXCHANGE REVENUES	May 2024	Year-to-Date May 2024	Year-to-Date May 2023
Other Revenue	(63)	(268)	(82)
Total Exchange Revenues	(63)	(268)	(82)
TOTAL NET COST/(INCOME) OF OPERATIONS	21,161	106,076	86,827

LESS NON-EXCHANGE REVENUES	May 2024	Year-to-Date May 2024	Year-to-Date May 2023
Interest Revenue - Investments	(47,786)	(226,275)	(157,091)
Total Non-Exchange Revenues	(47,786)	(226,275)	(157,091)
TOTAL NET COST/(INCOME) INCLUDING NON-EXCHANGE REVENUES	$(26,625)	$(120,199)	$(70,264)

* 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 May 31, 2024 and 2023 (Dollars in Thousands)

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

Non-Exchange Revenue	May 2024	May 2023
Interest Revenue - Investments	226,275	157,091
Net Unrealized Gain/(Loss) - Investments	(106,197)	280,033
Net Income /(Cost) of Operations	(106,076)	(86,827)
Change in Cumulative Results of Operations	14,002	350,297
CUMULATIVE RESULTS OF OPERATIONS	3,980,689	3,609,295

CONTRIBUTED CAPITAL	May 2024	May 2023
Beginning Balances	$17,234,861	$16,916,436
Change in Contributed Capital	(18,169)	(58,149)
CONTRIBUTED CAPITAL	17,216,692	16,858,287
NET POSITION	$21,197,381	$20,467,582

NET POSITION BREAKDOWN	May 2024	May 2023
Credit Union Contributed Capital	$17,216,692	$16,858,287
Retained Earnings	5,254,186	4,994,537
Total Net Position Without Unrealized Gain/ (Loss)	22,470,878	21,852,824
Unrealized Gain/ (Loss) - Investments	(1,273,497)	(1,385,242)
NET POSITION	$21,197,381	$20,467,582

Gross Income
May 2023 - May 2024

The first chart, titled “Gross Income,” shows monthly income figures ranging from approximately $35.7 million in May 2023 to $47.8 million in May 2024, displaying a generally increasing trend.

Operating Expenses
May 2023 - May 2024

The second chart, “Operating Expenses”, presents monthly expenses from around $19.9 million in May 2023, increasing to $23.5 million in December 2023, and then dropping to $21.2 million in May 2024.

Insurance Loss Expense (Reduction)
May 2023 - May 2024

The third chart, “Insurance Loss Expense (Reduction)” from May 2023 to May 2024, shows mostly zero values except for $6.4 million, -$4.8 million, -$5.7 million, and $5.9 million in June 2023, September 2023, December 2023, and March 2024 respectively.

INVESTMENT PORTFOLIO ACTIVITY

May 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	$5,657,215,000	5,657,215,500	-	100.00%	5.38%
U.S. Treasury Notes	16,863,780,596	15,590,283,290	(1,273,497,306)	92.45%	1.59%
Total	$22,520,995,596	$21,247,498,290	$(1,273,497,306)	94.35%	2.54%

II. INVESTMENT PORTFOLIO SUMMARY	Last Month	Current Month	CY To Date
Investment Yield	2.42%	2.54%	2.43%
Investment Income	$44,876,398	$47,785,737	$226,275,299
Weighted Avg. Maturity in Days / (Years)	790 (2.16)	859 (2.35)	-

III. MONTHLY ACTIVITY FOR T-NOTES

Purchased	Amount	Maturity	Yield
5/15/2024	$150,000,000	5/15/2030	4.36%
5/15/2024	$550,000,000	8/15/2030	4.36%
5/15/2024	$300,000,000	11/15/2030	4.33%

Maturity	Amount	Purchased	Yield
5/15/2024	$750,000,000	various	0.24% to 2.14%

IV. MATURITY SCHEDULE (par value in millions)

TOTAL PAR VALUE - $ 22,508

TOTAL UNREALIZED GAIN/(LOSS) - $ (1,273)

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 $5,657 million, with other categories showing balances ranging from $851 to $2,800 million. The “6yrs-7yr” category has the lowest balance at $851 million.

The lower chart, titled “Unrealized Gain/(Loss) (Millions)”, corresponds to the same time frame as the upper chart. It shows values ranging from $0 to -$354 million. The most significant unrealized loss is in the “3yr-4yr” time frame at -$354 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.