NCUA data released on Wednesday indicates that federally insured credit unions reported net income growth of $11.9 billion in the second quarter of 2021 — just more than 126% — over the same period one year ago.
The increase in net income largely resulted from strong growth in other operating income and a decline in the provisioning for loan, lease and credit loss expenses, according to the NCUA’s latest Quarterly Credit Union Data Summary, which provides an overview of the financial performance of federally insured credit unions based on information reported by credit unions in the second quarter of 2021.
Additionally, insured shares and deposits rose $196 billion – 14% — to $1.58 trillion when compared to the second quarter of 2020.
Additional second-quarter highlights from the report show:
- interest income declined 4.9%, over the year to $57.9 billion;
- non-interest income increased 23.5%, mainly due to growth in other operating income;
- the credit union system’s provision for loan and lease losses or credit loss expense declined 86.2%;
- total loans outstanding increased 5%;
- credit union loan balances rose in most major categories compared with the second quarter of 2020;
- the delinquency rate at federally insured credit unions was 46 basis points, compared with 58 basis points in the second quarter of 2020;
- credit union shares and deposits rose by $224.2 billion, or 15%, over the year to $1.71 trillion, while regular shares increased 18.9%; and
- the credit union system’s net worth increased by $18.1 billion, or 9.9%, to $201.1 billion, while the aggregate net worth ratio stood at 10.17%, down from 10.46% one year earlier.
To view the full data summary, visit the NCUA website.