NCUA Q1 2022 CU system performance data: Total loans, assets rise

NCUA data released on Tuesday indicates that federally insured credit unions reported that total loans outstanding in federally insured credit unions increased $136 billion, or 11.7%, over the year ending in the first quarter of 2022, to $1.30 trillion.

During the same period, total assets rose by $169 billion, or 8.7%, to $2.12 trillion, and insured shares and deposits rose $125 billion, or 8.0%, to $1.69 trillion, from one year earlier, according to the NCUA’s most recent Quarterly Data Summary Report.

“Overall, federally insured credit unions continued to perform well in the first quarter of 2022,” said Todd Harper, NCUA chairman. “Lending remained strong, and we continued to see low delinquency and charge-off rates. That said, ongoing supply chain disruptions, rising interest rates, inflationary pressures, and geopolitical turmoil will likely combine to lower earnings, loan growth, and credit quality in the months ahead. Credit unions, therefore, must remain nimble to navigate through this challenging economic environment.”

Highlights from the report for the first quarter of 2022 include:

  • Net income for federally insured credit unions totaled $18.1 billion at an annual rate, down $1.6 billion, or 8.2%, from the first quarter of 2021. Interest income rose $3.3 billion, or 5.7%, over the year to $61.0 billion. Non-interest income fell $2.0 billion, or 7.5%, to $24.3 billion, largely due to a drop in other income.
  • The credit union system’s provision for loan and lease losses or credit loss expense was little changed at $2.9 billion at an annual rate.
  • Total loans outstanding increased $136.2 billion, or 11.7%, over the year, to $1.30 trillion. Credit union loan balances rose in most major categories compared with the first quarter of 2021.
  • The delinquency rate at federally insured credit unions was 42 basis points, down 4 basis points compared with the first quarter of 2021. Loan performance was mixed across major categories.
  • Credit union shares and deposits rose by $157.9 billion, or 9.3%, over the year to $1.85 trillion. Regular shares increased $60.1 billion, or 9.6%, to $686.1 billion. Other deposits increased $37.0 billion, or 5.0%, to $777.7 billion, led by money market accounts, which were up $61.7 billion, or 17.1%.
  • The credit union system’s net worth increased by $21.1 billion, or 10.8%, over the year to $216.4 billion. The aggregate net worth ratio — net worth as a%age of assets — stood at 10.22%, up from 10.02% one year earlier.

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