ARLINGTON, Va.—Credit union performance data through the third quarter show the industry is well prepared for any soft economic landing, according to a NAFCU analysis.
“That is exemplified by the fact that the net worth ratio climbed above 11% for the first time since the pandemic,” said NAFCU Chief Economist and Vice President of Research Curt Long, in response to recent Call Report data. “Nevertheless, if ongoing headwinds in critical areas like fee income are allowed to persist, they could lead to issues down the road.”
NAFCU’s latest CU Industry Trends report showed member growth and loan growth continued to slide downward in the third quarter of 2023, while share growth is leveling off on a year-over-year basis. Notably, the industry consolidation rate sits roughly at its 10-year average; the industry has lost 2,000 credit unions over the past decade, NAFCU noted.
Other Key Trends
Other key data from the third quarter trends report found that:
- Idaho, Alabama, Florida, and Arizona saw the highest member growth
- Idaho, Utah, Arkansas, Wisconsin saw the highest share growth
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