Q3 2022 Profile Report: CUs generally in good financial shape

The New York Credit Union Association, in conjunction with CUNA, has released the Third 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 a third-quarter surge in COVID-19 Delta variant cases combined with Russia’s ongoing war in Ukraine combined to keep inflationary pressures at the forefront of the economic narrative in the third quarter of 2022.

In addition, inflation increased .46% in the third quarter, nearly identical to the .49% increase in the second quarter. Prices rose 8.4% in the year ending September, “a welcome slowing” from the 9% 12-month increase reported at the end of the second quarter — but “well above the Federal Reserve’s comfort zone,” according to the report.

Other highlights from the report include:

  • GDP increased at a 3.2% inflation-adjusted annualized rate in the third quarter, up from the second quarter 2022’s .6% decrease;
  • nationally, the unemployment rate declined modestly – starting the quarter at 3.6% and ending at 3.5%;
  • New York’s unemployment rate remained higher than the U.S. during the quarter at 4.3%;
  • The Federal Reserve increased its federal funds interest rate target more aggressively in the third quarter, by raising the rate .75% in both July and September;
  • New home sales were down 2% compared to second quarter 2022 levels and existing home sales were down 8%;
  • credit union financial results continued to reflect solid earnings, strong membership gains, and fast loan growth;
  • the growth rate in credit union loans outpaced the growth rate in savings balances by a wide margin and consequently, liquidity tightened for many with the movement’s net worth ratio rising marginally;
  • memberships increased by 1.6 % (i.e., 6.4% annualized) in the three months ending September and by 4.3% year-over-year;
  • the combination of slow asset growth and solid earnings helped to push the movement’s net worth ratio up from 10.7% to 10.9% during the quarter; and
  • overall, 96.2% of credit unions remain well capitalized with net worth ratios over 7% at the end of the first quarter.

Finally, the report states that credit 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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