CU Delinquencies Climb, But 87% Still Turn A Profit
By CU Today Staff —
ALEXANDRIA, Va.—Credit union delinquencies continued to move higher in the second quarter even as nearly nine in 10 federally insured credit unions remained profitable, according to new state-level data released by the NCUA.
The median total delinquency rate reached 69 basis points at the end of the second quarter, up from 65 basis points a year earlier. The increase comes as the NCUA’s separate national Q2 data show the aggregate delinquency rate reached 96 basis points, six basis points higher than a year earlier.
Despite the credit deterioration, 87% of federally insured credit unions reported positive year-to-date net income, unchanged from a year earlier. Median annualized return on average assets was also unchanged at 71 basis points. At the same time, median loan growth improved to 0.6% from a 0.2% decline a year earlier, while the median loan-to-share ratio eased to 69% from 70%.
Here is a closer look at the data:
Median Annual Share and Deposit Growth
Median Annual Membership Growth
Loan-to-share ratios are rounded to the nearest percentage point.
Median Return on Average Assets
Share of Credit Unions with Positive Net Income
Shares of credit unions with positive net income are rounded to the nearest percentage point.
Originally reported by CU Today.