What you need to know about NCUA’s 5300 Call Report updates

May 25, 2023

credit union employee with two female clients

Credit unions are required by the National Credit Union Association (NCUA) to submit a quarterly 5300 Call Report. 

The quarterly Call Report provides the NCUA with updated financial and statistical data on each financial institution’s assets, income and financial condition, which can be used to assess credit unions’ overall financial health and risk profiles.

These rules were developed to help ensure credit unions maintain strong levels of capital, to protect the soundness of credit unions and the safety of depositors’ funds—while simplifying compliance requirements.

The NCUA made changes to the 5300 Call Report in 2022, including ones that support the integration of the risk-based capital (RBC) rule and the Complex Credit Union Leverage Ratio (CCULR) rule.

Risk-based capital (RBC) and Complex Credit Union Leverage Ratio (CCULR) rules

Federally insured, natural-person credit unions with total assets greater than $500 million are subject to RBC requirements.1 The RBC ratio is calculated by dividing the RBC numerator by risk-weighted assets.

Under the 2022 rule updates, credit unions that maintain a minimum net worth ratio and meet other qualifying criteria are eligible to opt into the complex credit union leverage ratio (CCULR) framework if they have a minimum net worth ratio of 9%.1 

A credit union that opts into the CCULR framework isn’t required to calculate a risk-based capital ratio. In exchange, the credit union is required to maintain a higher net worth ratio than is required under RBC rules to be classified as well-capitalized. Credit unions that don’t opt in, or that don’t qualify for the CCULR framework, have to complete Schedule I to calculate their RBC ratio.

NCUA offers an Excel-based calculator for download on its website to help credit unions understand how they’re individually affected.

Federally insured, complex credit unions that opt-in and complete 5300 Call Report Schedule H to calculate their CCULR, and meet eligibility and qualifying criteria, are considered to have met the capital ratio requirements to be categorized as well capitalized if they have a CCULR of 9.0 or greater, and are not required to complete Schedule I to calculate their RBC ratio.1

The recording of assets held to fund employee benefits and charitable donation accounts

These assets are included on the balance sheet (pages 1 and 2) in accordance with their asset classification, whether or not any of these assets are authorized under Part 703 of NCUA regulations

Assets held to fund for employee benefits, executive benefits and charitable donation accounts (CDAs) are to be reported on Schedule B, which has been restructured to provide NCUA with details on asset classifications and accounting methods for various investments.

As a result, assets funding employee benefits and CDAs may be included in responses to more than one question. Along with questions about asset classifications and accounting methods, Schedule B questions 11 and 12 specifically request information about investments funding employee benefits and CDAs that are not authorized under Part 703.2

Federally insured credit unions, whether chartered federally or by their state government, are required to report the same information and record values of investments not authorized under part 703 of NCUA regulations being held for funding employee benefits, deferred compensation plans or charitable donation accounts under applicable state rules.

The data points required by the NCUA are subject to change each quarter, and details about accounting standards used provide additional transparency into credit unions’ capitalization and overall financial health.

Why it matters

Standards for capital adequacy are part of NCUA’s prudential toolkit to help ensure a safe and sound credit union system, as well as the soundness of individual credit unions. Adequate capital helps credit unions prevent institutional failure and dramatic deleveraging—potentially making the difference between credit unions that survive and those that fail in times of stress.

Maintaining high enough levels of capital can help credit unions insulate themselves from unexpected adversity that can impact their financial condition, reduce the likelihood of contributing to a systemic crisis and—perhaps most importantly—enable credit unions to continue providing credit during times of economic stress without the need for government intervention.

Reach out for more information

Required data points for the 5300 Call Report are subject to change. Your Cuna Mutual Retirement Services team is always ready to help.

1Federal Register, Vol. 86, No. 244, December 23, 2021.
2NCUA, Call Report Form 5300 Instructions, March 2022.