ALEXANDRIA, Va. – The NCUA Board is expected at next week’s meeting to charge credit unions around $825 million for its fourth annual corporate assessment, bringing the total cost of the corporate credit unions failures to almost $11 billion.

This year’s assessment, projected around 9.5 basis points, would bring to almost $5 billion the credit union regulator has charged credit unions over the past four years to pay for the failure of the corporates. That, combined with $5.6 billion in credit union capital erased after NCUA took over the five corporate failures and $280 million that NCUA transferred from the National CU Share Insurance Fund two years ago to the corporate bailout fund, brings the cost of the corporate resolution to almost $11 billion so far.

NCUA has assessed charges of $1.31 billion, $2 billion and $790 million for the first three years of the corporate bailout.

NCUA has projected the resolution of the five failures—U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU—to cost as much as $16 billion.

This year’s corporate assessment will be accounted for in the third quarter and payment will be due at NCUA in the third quarter.

Separately, NCUA announced a realignment of its regions this morning. As a result, credit unions in Colorado, Montana, New Mexico and Wyoming are moving from Region Five to Region Four; those in Louisiana and Arkansas moving from Region Four to Region Three; Wisconsin from Region Four to Region One; Ohio from Region Three to Region Two and California from Region Two back to Region Five.

The switch is effective Jan. 1

The return of California to NCUA’s Region Five is a “return to normal” said NCUA Chairman Debbie Matz . NCUA transferred oversight of California’s federally insured credit unions from Region Five to Region Two, located inside NCUA's Virginia headquarters, in 2010, as the state's financial crisis continued to claim dozens of credit unions. Previously, NCUA reassigned oversight of Nevada’s numerous troubled credit unions between 2009 and 2012. Region Five resumed supervision in Nevada at the start of 2013.

"Now that the economic downturn has ended, with the economy gaining strength and with the credit union industry generally performing well, we are reconfiguring our regions to create geographically compact districts that better balance workload, improve efficiency and reduce travel costs by more than $900,000 per year," said Matz.

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