ARLINGTON, Va.—Membership at credit unions remains “sturdy,” while share growth has returned to its pre-COVID level, according to NAFCU’s latest CU Industry Trends report.
The data also show that auto loans are surging and mortgage loans are rising as credit unions retain a higher share portfolio.
Meanwhile, the pace of industry consolidation is growing, with 3.5% of insured credit unions declining over the past 12 months. In terms of earnings and capital adequacy, net interest margins recovered somewhat in the second quarter, but fee income continued to fall.
Other Data Points
Other key data from the report:
- Credit unions are beginning to increase provisions for loan and lease losses (PLL) expense, and the charge-off rate climbed slightly in the second quarter
- Loan-to-share ratios spiked in the second quarter, but are still well below pre-COVID levels
- Delinquencies are still at historically low levels, while loss reserves have begun to drop
- Average share balances fell in the second quarter, the first quarterly decline in three years
In addition, noteworthy state level results include:
- Indiana, Iowa, Wyoming, and Nevada had the highest average membership growth
- Indiana, Iowa, Connecticut, Colorado, and Utah had the highest loan growth
- Iowa, Arkansas, Tennessee, and Texas had the highest return on assets
NCUA also recently released its state-level CU performance analysis. That data can be found here.
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