DUBLIN, Ohio – Private deposit insurer American Share Insurance announced another special premium today, its fourth in a row, this one of nine basis points.
The amount of the premium mirrors a 9.5 bp assessment NCUA charged federally insured credit unions this year to pay for the corporate credit union resoluton.
ASI, the last surviving private deposit insurer for credit unions, charged 15 bps premiums in each of the prevous three years, 2009-2011.
“Record-low investment yields, combined with the need for ASI to continue funding loss reserves in light of the slow recovery in select markets, is what drove the ASI Board of Directors to make this decision,” said Dennis Adams, president of ASI, which has also been hurt by $26.4 million it lent to Silver State Schools CU in Las Vegas. “The ASI Board ofDirectors closely monitored ASI’s earnings and reserves throughout the year and reviewed its options for an assessment with ASI’s Primary Insured Credit Union Advisory Council before arriving at 9 basis points.”
The premium will be assessed of all primary insured member credit unions of record as of September 30, about 140 state chartered credit unions in nine states.
The assessment will be based on total shares reported as of June 30, and invoiced on or about September 30.
With the payment of this Assessment, the company anticipates ending the year sustaining its equity ratio of 1.60%, dollars reserved per $100 of insure deposits. That compares to the 1.29% maintained by NCUA for the National CU Share Insurance Fund.