NCUA Q1 CU system performance data: Rising net income, elevated insured share growth

NCUA’s latest Quarterly Credit Union Data Summary provides an overview of the financial performance of federally insured credit unions based on information reported by credit unions in the first quarter of 2021.

Data for federally insured credit unions show that, as of March 31, 2021, there were 5,068 federally insured credit unions with 125.7 million members. Federally insured credit unions added 4.4 million members over the year, and credit union membership in these institutions reached 125.7 million in the first quarter of 2021.

The number of credit unions with low-income designations rose to 2,645 in the first quarter of 2021 from 2,631 a year earlier, while total assets in federally insured credit unions rose by $311 billion, or 19%, over the year ending in the first quarter of 2021, to $1.95 trillion, according to the report.

Additional first-quarter highlights from the report show:

  • Total loans outstanding increased $49 billion, or 4.4%, over the year to $1.17 trillion, while the average outstanding loan balance in the first quarter of 2021 was $16,157, up $282, or 1.8%, from one year earlier.
  • The delinquency rate at federally insured credit unions was 46 basis points, down 17 basis points from one year earlier. The net charge-off ratio was 32 basis points, down from 58 basis points.
  • Insured shares and deposits rose $286 billion, or 22.4%, over the year ending in the first quarter of 2021, to $1.56 trillion. The loan-to-share ratio stood at 68.8%, down from 81.1%.
  • The credit union system’s net worth ratio was 10.01%, compared with 11% one year earlier.
  • Net income totaled $19.7 billion at an annual rate, up $11.3 billion, or 134.9%, from the same period a year ago.
  • The net interest margin for federally insured credit unions was $48.7 billion, or 2.57% of average assets. That compares with $47.2 billion, or 2.95% of average assets, in the first quarter of 2020.
  • The return on average assets for federally insured credit unions was 104 basis points up from 52 basis points in the first quarter of 2020. The median return on average assets across all federally insured credit unions was 38 basis points, down 3 basis points.

To view the full data summary, visit the NCUA website. Visit the New York’s State of Mind blog for analysis of the data summary by Henry Meier, New York Credit Union Association SVP/general counsel.

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