This is a special Archive Thursday episode of With Flying Colors. In this conversation with Steve Farrar and Todd Miller, we explore what it really means when a credit union is downgraded to a CAMEL Code 4.

We discuss the implications for NCUA supervision, administrative actions, and how examiners begin building a formal record. You’ll learn about the added burden of frequent exams, the role of letters of understanding and agreements, and how Code 4 status impacts liquidity options, board responsibilities, and long-term viability.

Packed with hard-earned insights from decades inside NCUA, this archive episode helps credit unions understand both the risks and the pathways to recovery when facing a Code 4 downgrade