NEW YORK–Forty credit unions were undercapitalized at the end of the third quarter, a decrease from the 43 that were undercapitalized at the end of Q2, according to S&P Global Market Intelligence data.
Overall, the credit union community’s median net worth ratio rose 11 basis points to 10.78%, according to company’s analysis.
Two of the three credit unions that reported a net worth ratio below 2% as of Sept. 30, two are no longer operating. On Sept. 30, NCUA liquidated Paducah, Ky.-based Paducah Teachers FCU, with C-Plant FCU purchasing some of the credit union's assets and assuming most of its share accounts. Meanwhile, Oxford, Ohio-based First Miami University Student FCU has since merged with Miami University Community FCU, S&P Global Market Intelligence reported.
The Specifics
Among the other findings in the Q3 analysis of credit union net worth as conducted by S&P Global:
- New York-based St. Johns Buffalo FCU saw its net worth ratio drop to 1.63% at Sept. 30, down from 3.55% at the end of June and 5.83% at the end of September 2021. The credit union has lost money in each of the last four quarters, the company said.
- Five credit unions reported net worth ratios between 2.00% and 4.00% at the end of September, including Hartville, Ohio-based Lake Community FCU and Kansas City, Mo.-based Bayer CU, which have since merged into Akron, Ohio-based Buckeye State CU Inc. and Lenexa, Kan.-based CommunityAmerica CU, respectively.
- The other three credit unions — Richmond, Ind.-based Richmond City Employees FCU; Wilkes-Barre, Pa.-based Vantage Trust FCU; and Amityville, N.Y.-based Branch 6000 NALC CU — each saw their net worth ratios fall again.
- New York once again led the country by a “large margin,” S&P Global Market Intelligence reported, with nine undercapitalized credit unions and was the only state with two operating credit unions with net worth ratios below 4%.
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