NCUA Equity Distribution Rule (12 CFR 741)

On March 7, 2019, the NCUA Board announced a 2018 $160.1 million Share Insurance Fund equity distribution to all eligible financial institutions. Under final rule Part 741, which created a temporary provision governing Share Insurance Fund equity distributions related to the Corporate System Resolution Program, the NCUA Board will effect a pro rata distribution to each eligible institution that filed a quarterly Call Report as a federally insured credit union for at least one reporting period in 2018 (March 31, 2018, June 30, 2018, September 30, 2018, or December 31, 2018).


Calculating the Distribution

The NCUA has computed a preliminary pro rata factor of 0.00018187756400 per average insured share. This pro rata factor is subject to change, but you can estimate the pro rata share of the Share Insurance Fund equity distribution by calculating the average amount of insured shares as reported on your quarterly Call Reports from March 31, 2009, to December 31, 2018, and multiplying the result by 0.00018187756400.


Average Insured Shares (40 qtr. period)

x 0.00018187756400   

 =  Estimated Equity Distribution 

Accounting Entry:

The proper accounting entry will be a debit to Accounts Receivable and a credit to Other Operating Income. If the distribution is different than the original estimate, an adjustment will need to be made: debit or credit the Other Operating Income and Accounts Receivable accounts accordingly. When the distribution is received, debit Cash and credit Accounts Receivable.