NCUA releases Q2 credit union performance data

The NCUA’s Quarterly Credit Union Data Summary provides an overview of the financial performance of federally insured credit unions based on information reported by credit unions to the National Credit Union Administration in the 2018 Q2 Call Report. As of June 30, 2018, there were 5,480 federally insured credit unions with 114.1 million members.

The Quarterly Credit Union Data Summary features an updated design that includes an overview of the quarterly Call Report data as well as tables showing the recent history of major credit union performance indicators. The summary includes a description of collection and reporting changes that affect some of the performance indicators in the tables.

Performance indicators include:

  • Total assets in federally insured credit unions rose by $79 billion, or 5.8 percent, over the year ending in the second quarter of 2018, to $1.43 trillion.
  • Total loans outstanding increased $89 billion, or 9.8 percent, over the year to $1.0 trillion. The average outstanding loan balance in the second quarter of 2018 was $15,226, up $611, or 4.2 percent, from one year earlier.
  • The delinquency rate at federally insured credit unions was 67 basis points in the second quarter of 2018, down from 75 basis points one year earlier. The net charge-off ratio was 60 basis points, up from 57 basis points in the second quarter of 2017.
  • Insured shares and deposits rose $56 billion, or 5.2 percent, over the four quarters ending in the second quarter of 2018, to $1.13 trillion.
  • The loan-to-share ratio stood at 83.0 percent in the second quarter of 2018, up from 79.7 percent in the second quarter of 2017.
  • The credit union system’s net worth ratio was 11.01 percent in the second quarter of 2018, compared with 10.80 percent one year earlier.
  • Net income totaled $12.7 billion at an annual rate in the second quarter of 2018, up $2.5 billion, or 24.8 percent, from the same period a year ago.
  • The net interest margin for federally insured credit unions was $43.2 billion in the second quarter of 2018, or 3.1 percent of average assets. That compares with $38.7 billion, or 2.9 percent of average assets, in the second quarter of 2017, NCUA said.
  • The return on average assets for federally insured credit unions was 90 basis points over the year ending in the second quarter of 2018, up from 77 basis points in the second quarter of 2017. The median return on average assets across all federally insured credit unions was 52 basis points, up 15 basis points from the second quarter of 2017.
  • The number of federally insured credit unions declined to 5,480 in the second quarter of 2018, from 5,696 in the second quarter of 2017. In the second quarter of 2018, there were 3,444 federal credit unions and 2,036 federally insured, state-chartered credit unions. “The year-over-year decline is consistent with long-running industry consolidation trends,” the agency said.
  • The number of credit unions with a low-income designation rose to 2,544 in the second quarter of 2018 from 2,524 one year earlier.
  • Federally insured credit unions added 4.8 million members over the year, and credit union membership in these institutions reached 114.1 million in the second quarter of 2018.

“Consistent with long-running trends, credit unions with assets of at least $1 billion reported the strongest growth in loans, membership, and net worth over the year ending in the second quarter of 2018,” NCUA noted in its analysis. “Credit unions with less than $100 million in assets reported declines in loans, membership, and net worth over the year.”

Read the full report here.