NCUSIF Reports on Financial Results for First Ten Months of 2003: Loss Reserves up 234% and earnings down 70%

At the November NCUA Board meeting, the financial results for the NCUSIF were presented. The Fund reported total assets of $6.2 billion at October 31, 2003 most of which is investments in U.S. Government securities. The major components of liabilities and equity included a provision for loss reserves at $74.2 million, the 1% deposit from credit unions totaling $4.7 billion and retained earnings of $1.37 billion.

 
 

At the November NCUA Board meeting, the financial results for the NCUSIF were presented. The Fund reported total assets of $6.2 billion at October 31, 2003 most of which is investments in U.S. Government securities. The major components of liabilities and equity included a provision for loss reserves at $74.2 million, the 1% deposit from credit unions totaling $4.7 billion and retained earnings of $1.37 billion.

The Fund's financial model relies primarily on earnings from the $6.0 billion investment portfolio to meet the Fund's operating and insurance expenses. A summary of the 2003 fiscal year's results versus 2002 is below:

 

 

 

Dec. 1, 2003


Comments

 
 
 
  • Why did the loss reserve increase so much?
    Anonymous
     
     
     
  • Gee, do you think the NCUSIF has to adjust their allowance for loan losses to reflect real estimated losses like credit unions are being forced to do by their auditors?
    Anonymous
     
     
     
  • Higher loss provisions + risky commercial lending growth + lower NCUSIF earnings + continued share growth = premium charges! don't you agree
    Anonymous