As of June 30, 2002 approximately 8.1% of all credit union shares were uninsured by the National Credit Union Share Insurance Fund (NCUSIF), a dramatic increase from the 4.2% of all shares only five years ago. The amount of uninsured shares has risento almost $39 billion, up from $12.7 billion in 1997 (see chart below). The combination of high share growth at credit unions and the increase in the percentage of uninsured shares has led to this astounding 25% annual compounded growth rate overthe past five years.
The impact of this trend is felt more heavily at larger credit unions. Over 9% of shares are uninsured at credit unions over $50 million in assets and that number increases to 10.2% for credit unions over $250 million in assets.
One option some credit unions utilize to help protect these uninsured shares is to obtain private excess deposit insurance to cover member share balances over the $100,000 the NCUSIF protects. Converting exclusively to private insurance is also an optionfor some state chartered credit unions. Last month Patelco Credit Union ($2.8 Billion in total assets) finalized the conversion process for private deposit insurance to covermember share balances up to $250,000. With the completion of this conversion Patelco, which previously had over $470 million in uninsured shares or 18.5% of total shares, will reduce the amount of uninsured member shares significantly.
Excess insurance covers balances over $100,000 and is availible in many states from several private share insurers. Since June 1997, the number of credit unions with excess share insurance has also increased 44% from 383 to 551 covering $6.25 Billionin shares over the $100,000 NCUSIF limit.
Navy2,082,263,72416,381,136,21915.54%
| Rank | State | Credit Union | Uninsured Shares | $ Assets | % of Shares Uninsured |
| 1 | VA | ||||
| 2 | TX | American Airlines | 753,814,562 | 3,576,427,234 | 23.39% |
| 3 | IL | United Airlines Employees | 672,155,195 | 3,917,862,442 | 19.72% |
| 4 | CA | Orange County Teachers | 613,217,850 | 3,683,926,689 | 18.92% |
| 5 | NC | State Employees | 534,090,208 | 9,108,538,345 | 6.41% |
| 6 | WA | Boeing Employees | 528,335,329 | 4,231,176,612 | 14.60% |
| 7 | CA | Patelco | 471,886,230 | 2,826,005,416 | 18.59% |
| 8 | CA | The Golden 1 | 396,060,429 | 4,080,250,629 | 10.81% |
| 9 | CA | STAR One | 382,460,421 | 2,306,175,835 | 19.45% |
| 10 | NY | United Nations | 370,090,315 | 1,494,379,647 | 27.65% |
| 11 | DC | Bank-Fund Staff | 317,970,756 | 1,438,391,292 | 26.29% |
| 12 | FL | Vystar | 317,504,822 | 2,374,678,018 | 15.70% |
| 13 | CA | Kinecta | 314,939,439 | 2,829,216,834 | 12.23% |
| 14 | VA | Pentagon | 305,556,011 | 4,861,306,385 | 7.08% |
| 15 | CA | Lockheed | 287,420,933 | 1,444,543,344 | 23.59% |
| 16 | UT | America First | 263,145,695 | 2,272,484,749 | 13.10% |
| 17 | CA | Wescom | 239,805,816 | 2,101,197,137 | 14.28% |
| 18 | IL | Citizens Equity First | 237,872,198 | 2,369,426,082 | 11.26% |
| 19 | GA | Delta Employees | 224,401,288 | 2,164,661,439 | 11.85% |
| 20 | TX | Texas Dow Employees | 212,764,526 | 713,213,859 | 33.71% |
| 21 | AK | Alaska USA | 190,698,836 | 2,023,830,504 | 10.63% |
| 22 | FL | Suncoast Schools | 187,566,720 | 3,299,753,908 | 6.34% |
| 23 | CA | San Diego County | 179,458,255 | 1,870,936,929 | 10.80% |
| 24 | TX | Security Service | 179,222,415 | 2,505,617,259 | 7.81% |
| 25 | MA | Digital | 174,245,633 | 1,607,515,973 | 11.76% |
| Average: | 15.66% |
