Share, deposits grow, but CUs should prepare for potential challenges

Credit unions saw continued share and deposit growth in the third quarter of 2021, but should be prepared for potential upcoming challenges, according to the NCUA.

According to the latest financial performance data released by the NCUA on Monday:

  • federally insured credit unions saw shares and deposits increase by $219.9 billion, or 14.4%, to $1.75 trillion over the year ending in the third quarter of 2021;
  • regular shares increased $95.8 billion, or 17.6%, to $640.0 billion; and
  • total assets in federally insured credit unions rose by $231 billion, or 12.9%, to $2.02 trillion in the third quarter of 2021.

“Federally insured credit unions, as a whole, continued to perform well in the third quarter,” said Todd Harper, NCUA chairman. “Lending has increased 5.8% compared to this point a year ago, and delinquency and charge-off rates are down. And, nearly 5 million new members have joined a federally insured credit union in the last 12 months. That is all good news.”

“There is, however, wisdom in the age-old advice: If you fail to plan, you plan to fail,” Harper added. “While the third quarter data appear strong, federally insured credit unions should brace for potential challenges ahead like inflation and interest rate risk. They should also prepare for increases in credit risks now that many pandemic-relief programs have ended.”

The quarterly credit union data summary for the third quarter can be accessed on the NCUA website.

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