Q2 2022 Profile Report: CUs have resources to serve in meaningful ways

On By nycuaIn NY Minute

The New York Credit Union Association, in conjunction with CUNA, has released the Second Quarter 2022 New York Credit Union Profile report. The report provides relevant and up-to-date analysis of key statistics and trends that impact credit union performance.

The report states that continued convergence of lingering supply-demand imbalances caused by the COVID-19 pandemic, and emerging inflationary pressure stemming from the invasion of Russia in Ukraine have pushed inflation up to a 40-year high.

In addition, New York state’s unemployment rate remained higher than the U.S. rate during the quarter, finishing at 4.4% like the 4.4% national pre-COVID crisis rate.

Other highlights from the report include:

  • the Federal Reserve increased its federal funds interest rate target more aggressively in the second quarter, by raising the rate 0.75% in June to tame record high price increases;
  • on the housing front, overall market activity was mixed, with sales going down, but prices still appreciating;
  • prices on purchase money market mortgages in New York increased by 14.9% in the year ending June 2022;
  • credit union financial results continued to reflect strong earnings, solid membership gains, fast loan growth, and above average savings growth during the second quarter;
  • the growth rate in credit union loans outpaced the growth rate in savings balances in the quarter, representing the highest mid-year cumulative loan growth in 25 years;
  • memberships increased by 1.3 % (i.e., 5.2% annualized) in the three months ending June and by 4.1% year-over-year; and
  • credit union loan balances experienced 25-year high growth in the first half of the year, increasing 6.6% in the second quarter, an annualized rate of 26.4%.

Finally, the report states that “[c]redit unions started 2022 in generally good financial shape and nearly all should have the resources to continue to serve in meaningful ways as millions of members struggle to make it through personal financial challenges related to high inflation and the potential for a significant economic slowdown.”

The report (log-in required) was emailed to the main contacts at Association member credit unions on Monday. For assistance with accessing the reports, contact the Association’s member relations team at member.relations@nycua.org or (800) 342-9835, ext. 8546.

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