At the end of each calendar year, the NCUA will calculate the equity ratio using the formula below for purposes of determining whether the NCUA Board must effect a distribution:
| Quarter-End | Calculation |
|---|---|
| Calendar Year-end | Actual 12/31 Retained Earnings + Actual 12/31 Contributed Capital1
Actual 12/31 Insured Shares2 |
In all cases, retained earnings are net of any direct liabilities of the Share Insurance Fund and contingent liabilities for which no provision has been made.
The calendar year-end equity ratio will be calculated once fourth quarter Call Reports are validated by the NCUA. If the statutory requirements for declaring a distribution are met, the amount of the distribution will be determined as described in the equity distributions final rule.
Interim Reporting
The NCUA will calculate the equity ratio two times each year – using actual June data and actual December data, as soon as validated insured shares data is available.3 This will be the official equity ratio used for purposes described above and for interim reporting, using the criteria in the following table:
| Reporting Period | March - August | September - February |
|---|---|---|
| Numerator | Actual 12/31 retained earnings + Actual 12/31 contributed capital | Actual 6/30 retained earnings + Actual 6/30 contributed capital |
| Denominator | Actual 12/31 insured shares | Actual 6/30 insured shares |
In all cases, retained earnings are net of any direct liabilities of the Share Insurance Fund and contingent liabilities for which no provision has been made.
Recently Reported Equity Ratio
| Reporting Period | Equity Ratio | Data as-of |
|---|---|---|
| December 2023 | 1.30% | December 2023 |
| June 2023 | 1.27% | June 2023 |
| December 2022 | 1.30% | December 2022 |
| June 2022 | 1.26% | June 2022 |
| December 2021 | 1.26% | December 2021 |
| June 2021 | 1.23% | June 2021 |
| December 2020 | 1.26% | December 2020 |
| June 2020 | 1.22% | June 2020 |
| December 2019 | 1.35% | December 2019 |
| June 2019 | 1.33% | June 2019 |
| December 2018 | 1.39% | December 2018 |
| June 2018 | 1.35% | June 2018 |
| December 2017 | 1.46% | December 2017 |
| September 2017 | 1.25% | June 2017 |
Footnotes
1 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.
2 The aggregate amount of insured shares, using whole dollars, as reported by all insured credit unions on Form 5300 and 5310 Call Reports.
3 The available assets ratio will also be calculated twice per year using actual June data and actual December data for the numerator and denominator.