ALEXANDRIA, Va.-NCUA said the total assets represented by CAMEL code 3, 4 and 5 CUs fell by $10.7 billion during Q3 as the NCUSIF equity ratio rose to 1.32% as of Sept. 30. The percentage of assets in troubled credit unions is at its lowest point since 2008. Overall, 15.1% of all federally insured credit union assets were in CAMEL code 3, 4 or 5 institutions, resulting in a one-percentage-point improvement from the end of the second quarter.

CAMEL code 4 and 5 credit unions decreased by 17, for a total of 382 as of Sept. 30. Assets and shares were $26.3 billion and $23.5 billion, respectively. As a percentage, CAMEL code 4 and 5 credit unions represented 2.8% of total insured shares.

For Q3, the NCUSIF reported gross income of $53.6 million and operating expenses of $38.7 million. The fund also reduced its reserve for insurance losses by $147.2 million, resulting in an increase in net income. The NCUSIF had net income of $162.1 million for the quarter and $167.6 million year-to-date through Sept. 30.

New CU Granted Insurance

Meanwhile, in Montgomery, Ala., a new state-chartered community development CU here is one step closer to opening its doors, after NCUA's Office of Consumer Protection approved Gateway CU for federal deposit insurance. Gateway is the first low-income CU chartered in Alabama in 2012. It will serve potential members in Montgomery, Elmore, Autauga, Lowndes, Dallas, Perry or Wilcox counties, approximately 437,000 residents.

It plans to open in December 2012.

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.