ARLINGTON, Va.—The credit union industry’s net worth ratio is up nearly 50 basis points from a year ago, according to a new report that also shows how CECL is impacting bottom lines.
The findings were included as part of NAFCU’s latest CU Industry Trends Report, which reveals that while delinquencies remain low, loan loss reserves surged in the first quarter as the current expected credit loss (CECL) standard took effect for most credit unions Jan. 1.
As a result, the NAFCU analysis shows, industry earnings dropped during the first quarter, partly reflecting the rising provision for loan loss expenses. The industry also saw the highest rate of consolidation since 2016, losing 3.9% of federally insured credit unions over the prior year.
Other Findings
According to NAFCU, other key data from the first quarter Trends Report include:
- Credit unions in Idaho, South Dakota, Arizona, and Utah saw the highest loan growth
- Iowa, Idaho, Wyoming, and Arkansas saw the highest share growth
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