ALEXANDRIA, Va. (May 21, 2019) – This week, the National Credit Union Administration will pay dividends for more than 5,500 institutions eligible for the $160.1 million National Credit Union Share Insurance Fund distribution, the agency announced today.
“Prudent actions by the NCUA Board and the agency’s successful stewardship of the Share Insurance Fund made this distribution possible,” NCUA Board Chairman Rodney E. Hood said. “I’m delighted the NCUA has been able to issue nearly $900 million in equity distributions over the past year — money that is going back into communities to support small businesses, promote economic growth, and improve the financial well-being of credit union members across the country.”
Statements were mailed to dividend recipients indicating the amounts they will receive. An institution that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in calendar year 2018 will be eligible for (opens new window) this pro rata distribution.
The NCUA Board approved a $160.1 million dividend in March after the Share Insurance Fund reported an equity ratio of 1.39 percent at the end of 2018. That ratio was above the Board-approved normal operating level of 1.38 percent, triggering a distribution under the Federal Credit Union Act and NCUA’s rules and regulations.
This is the second equity distribution since the closure of the Temporary Corporate Credit Union Stabilization Fund and the transfer of its assets to the Share Insurance Fund in October 2017.
The NCUA Board will continue to monitor the health and risk exposure of the Share Insurance Fund, and will evaluate the normal operating level annually to determine its appropriate level, based on an analysis of data and trends.
Information on the Share Insurance Fund distribution, including the method the NCUA used to determine each institution’s share, can be found here. Additional information on the Share Insurance Fund’s equity ratio and normal operating level is also available on the NCUA’s website.