8.1% of all Credit Union Shares Uninsured

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 risen to almost $39 billion, up from $12.7 billion in 1997 (see chart below). The combination

 
 

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 risen to 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 over the 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 option for 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 cover member 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 Billion in shares over the $100,000 NCUSIF limit.

Rank
State
Credit Union
Uninsured Shares
$ Assets
% of Shares Uninsured
1 VA Navy 2,082,263,724 16,381,136,219 15.54%
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%

 

 

 

 

Oct. 7, 2002


Comments

 
 
 
  • Interesting and well put together.
    Anonymous
     
     
     
  • As a member of Patelco Credit Union I plan to move my assets to a federallu insured bank or credit union
    Anonymous
     
     
     
  • If I were Texas Dow Employees I would ask some questions to see whether additional insurance was purchased. Great information.
    Anonymous