ALEXANDRIA, Va. –Total loans outstanding in federally insured credit unions increased $136 billion, or 11.7%, over the year ending in the first quarter of 2022, to $1.30 trillion. During the same period, total assets rose by $169 billion, or 8.7%, to $2.12 trillion, according to the latest financial performance data released by NCUA.
The agency added that insured shares and deposits rose $125 billion, or 8.0%, to $1.69 trillion, from one year earlier.
“Overall, federally insured credit unions continued to perform well in the first quarter of 2022,” said NCUA Chairman Todd M. Harper. “Lending remained strong, and we continued to see low delinquency and charge-off rates. That said, ongoing supply chain disruptions, rising interest rates, inflationary pressures, and geopolitical turmoil will likely combine to lower earnings, loan growth, and credit quality in the months ahead. Credit unions, therefore, must remain nimble to navigate through this challenging economic environment.”
NCUA noted its Quarterly Credit Union Data Summary provides an overview of the financial performance of federally insured credit unions based on information reported to the agency in the first quarter of 2022. As of March 31, 2022, there were 4,903 federally insured credit unions with 131.0 million members.
Report highlights:
- Net income for federally insured credit unions in the first quarter of 2022 totaled $18.1 billion at an annual rate, down $1.6 billion, or 8.2%, from the first quarter of 2021. Interest income rose $3.3 billion, or 5.7%, over the year to $61.0 billion. Non-interest income fell $2.0 billion, or 7.5%, to $24.3 billion, largely due to a drop in other income.
- The credit union system’s provision for loan and lease losses or credit loss expense was little changed at $2.9 billion at an annual rate in the first quarter of 2022.
- Total loans outstanding increased $136.2 billion, or 11.7%, over the year, to $1.30 trillion. Credit union loan balances rose in most major categories compared with the first quarter of 2021.
- The delinquency rate at federally insured credit unions was 42 basis points in the first quarter of 2022, down 4 basis points compared with the first quarter of 2021. Loan performance was mixed across major categories.
- Credit union shares and deposits rose by $157.9 billion, or 9.3%, over the year to $1.85 trillion in the first quarter of 2022. Regular shares increased $60.1 billion, or 9.6%, to $686.1 billion. Other deposits increased $37.0 billion, or 5.0%, to $777.7 billion, led by money market accounts, which were up $61.7 billion, or 17.1%.
- The credit union system’s net worth increased by $21.1 billion, or 10.8%, over the year to $216.4 billion. The aggregate net worth ratio — net worth as a%age of assets — stood at 10.22% in the first quarter of 2022, up from 10.02% one year earlier.
NCUA’s data reflects overall industry performance numbers. However, as CUToday.info has regularly reported, other data show the growth is generally limited to credit unions of $1 billion in assets or more. CUNA Mutual Group's latest Trends Report (see related story) shows CUs of $1-billion plus grew membership 6% in the first quarter of the year, while credit unions of $100 million or less in assets have lost members overall for the past two years.