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About
About
Created by the U.S. Congress in 1970, the National Credit Union Administration is an independent federal agency that insures deposits at federally insured credit unions, protects the members who own credit unions, and charters and regulates federal credit unions.
Regulation & Supervision
Regulation & Supervision
The NCUA protects the safety and soundness of the credit union system by identifying, monitoring and reducing risks to the National Credit Union Share Insurance Fund. Backed by the full faith and credit of the United States, the Share Insurance Fund provides up to $250,000 of federal share insurance to millions of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.
Analysis
Analysis
The NCUA’s economists and analysts compile data on the credit union system’s financial performance, merger activity, changes in credit union chartering and fields of membership, as well as broader economic trends affecting credit unions. Users can find information on a single credit union or analyze broader nation-wide trends.
Support Services
Support Services
The NCUA provides a number of support services to the credit union system, such as providing training, grants and loans, chartering, and field-of-membership services; maintaining the health and stability of Share Insurance Fund; managing the assets of failed credit unions; and providing emergency liquidity.
Consumers
Consumers
The NCUA works to protect credit union members and consumers, raise awareness of potential frauds, facilitate access to affordable financial services, and educate consumers on the importance of savings and how they can improve their financial well-being.
News
News
Stay up to date on the NCUA's activities by subscribing to the NCUA's Express messages. Read press releases, speeches, testimony, and Annual Reports. Register for upcoming conferences and events.
Cybersecurity Resources
Cybersecurity Resources
Cyberattacks and cybersecurity vulnerabilities pose significant risks to the financial system. Because of vulnerabilities within the credit union industry and the broader financial system to potential cyberattacks, cybersecurity is one of the NCUA’s top supervisory priorities and a top-tier risk under the agency’s enterprise risk-management program.

Reviewing Adequacy of Earnings

09-CU-23 / November 2009

Reviewing Adequacy of Earnings

To

Federally Insured Credit Unions

Subject

Examination Program

Status

Active

To

Federally Insured Credit Unions

Subj

Reviewing Adequacy of Earnings

Encl

Supervisory Letter – Reviewing Adequacy of Earnings

Dear Board of Directors:

NCUA examiners were recently provided guidance addressing the evaluation of earnings. This letter provides all federally insured credit unions with the same guidance via the attached Supervisory Letter.

NCUA continues to appreciate the delicate balance credit unions must strive to achieve between the short-term and long-term needs of the credit union. I encourage credit union officials to be committed to a conscientious and well-planned strategy to safely balance the net worth and earnings needs of the credit union with the current and future risk profile. I am confident that with an open dialogue examiners will continue to consider all the quantitative and qualitative factors available.

Guidance referenced in the attached letter was directed to NCUA examiners. State-chartered credit unions should consult with their state regulator for further guidance concerning the evaluation of earnings.

If you have any questions related to this Letter, you should contact your regional office, district examiner, or state supervisory authority.

Sincerely,

/s/

Deborah Matz
Chairman

Enclosures

Supervisory Letter – Reviewing Adequacy of Earnings

Last modified on

11/14/24