CU failures cost Share Insurance Fund $785 million in 2018
According to the NCUA's 2018 financial report, a large portion of the losses can be attributed to the failures of two credit unions.
Eight credit union failures drained $785 million from the NCUA’s Share Insurance Fund in 2018— a $760.6 million increase over the previous year.
In 2017, ten credit unions failed; in 2018, eight credit unions failed, but they were some of the larger credit unions, the NCUA said in its 2018 financial report.
The report also states that at the end of the year, the NCUA’s Normal Operating Level stood at 1.39%. The NCUA had set the operating level at 1.38% late last year.
As a result, the agency report said that it might be possible to provide a distribution to credit unions.
A large portion of the share insurance fund losses can be attributed to the failures of Melrose Credit Union and LOMTO Federal Credit Union.
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