ALEXANDRIA, Va. (4/14/14)--The National Credit Union Administration's Central Liquidity Facility (CLF) performed well during the first quarter of this year, the agency announced Friday.
The CLF's stock dividend rate increased to 0.25%, its assets reached $180 million, up from $115 million at the end of the first quarter of 2013, and its retained earnings hit $27.8 million, up from $27.4 million at the same time last year.
CLF membership grew to 218 credit unions, up from 129 at the end of the first quarter of 2013.
The CLF, created by Congress in 1998, serves as a lender of last resort for credit unions to meet short- or long-term liquidity needs, much as the Federal Reserve System does for banks. Credit unions are also allowed access to the Fed discount window.
The NCUA also reported that the maximum legal borrowing authority of the CLF grew to $3.8 billion, up from $2.4 billion at the end of the first quarter of 2013.
The NCUA called the 0.25% stock dividend rate for the CLF is a "significant change" from the 0.10% rate paid quarterly since the fourth quarter of 2012. The agency added that CLF management expects moderate growth in both membership and portfolio earnings during 2014, with a strong likelihood the 0.25% rate will continue.
"The CLF's steady growth in membership and assets has enabled it to expand its earnings base and borrowing capacity, increase retained earnings and pay the higher dividend rate," the NCUA noted in a release.
As of March 31, credit unions with assets of $250 million or more are required to have access to either the CLF or the Fed's discount window for an emergency source of liquidity.