The following calculations determine whether the statutory criteria for requiring a premium or restoration plan for the Share Insurance Fund are met and the maximum amount of the premium allowed under statute.1 Twice each year, using actual data as of June and December, the NCUA will calculate the actual ratio to determine if the equity ratio is less than 1.20 percent.
| Quarter-End | Calculation |
|---|---|
Quarter-End Calendar Year-end |
Calculation Actual 12/31 Retained Earnings + Actual 12/31 Contributed Capital2
Actual 12/31 Insured Shares3 |
Quarter-End Mid-year |
Calculation Actual 6/30 Retained Earnings + Actual 6/30 Contributed Capital
Actual 6/30 Insured Shares |
The NCUA will project the equity ratio for the subsequent six months twice each year to determine whether a restoration plan is required, based on June and December data as follows:
| Projected Quarter-End | Calculation |
|---|---|
Projected Quarter-End June |
Calculation Projected 6/30 Retained Earnings + 1% of 12/31 Insured Shares
Projected 6/30 Insured Shares |
Projected Quarter-End December |
Calculation Projected 12/31 Retained Earnings + 1% of 6/30 Insured Shares
Projected 12/31 Insured Shares |
In all cases, retained earnings are net of any direct liabilities of the Fund and contingent liabilities for which no provision has been made.
Recently Projected Equity Ratio
| Reporting Period | Projected Equity Ratio | Effective Date of Data |
|---|---|---|
Reporting Period June 2025 |
Projected Equity Ratio 1.26% |
Effective Date of Data December 2024 |
Reporting Period December 2024 |
Projected Equity Ratio 1.28% |
Effective Date of Data June 2024 |
Reporting Period June 2024 |
Projected Equity Ratio 1.24% |
Effective Date of Data December 2023 |
Reporting Period December 2023 |
Projected Equity Ratio 1.27% |
Effective Date of Data June 2023 |
Reporting Period June 2023 |
Projected Equity Ratio 1.25% |
Effective Date of Data December 2022 |
Reporting Period December 2022 |
Projected Equity Ratio 1.30% |
Effective Date of Data June 2022 |
Reporting Period June 2022 |
Projected Equity Ratio 1.25% |
Effective Date of Data December 2021 |
Reporting Period December 2021 |
Projected Equity Ratio 1.28% |
Effective Date of Data June 2021 |
Reporting Period June 2021 |
Projected Equity Ratio 1.22% |
Effective Date of Data March 20214 |
Reporting Period December 2020 |
Projected Equity Ratio 1.32% |
Effective Date of Data June 2020 |
Reporting Period June 2020 |
Projected Equity Ratio 1.33% |
Effective Date of Data December 2019 |
Reporting Period December 2019 |
Projected Equity Ratio 1.37% |
Effective Date of Data June 2019 |
Footnotes
1 12 USC § 1782(c)(2)(B)(ii).
2 Actual retained earnings, defined as cumulative results of operations, excluding net cumulative unrealized gains and losses on investments and contributed capital using whole dollars from the trial balance that supports the Share Insurance Fund’s audited financial statements.
3 The aggregate amount of insured shares, using whole dollars, as reported by all insured credit unions on Form 5300 and 5310 Call Reports.
4 Due to the uncertainty in the economy and its impact on insured share growth due to the COVID-19 pandemic, the agency decided to hold the calculation until March 31, 2021, insured share data became available and could be used to update the June 30, 2021, projection.