WASHINGTON—The 10 largest credit unions at the end of 2019 saw in aggregate increases in provisions for loan and lease losses and allowance for loan and lease losses in the first quarter of 2020 compared to a year earlier.
Net income at these 10 credit unions (see chart below) in aggregate fell year-over-year, reported Keith Leggett, the former senior vice president and senior economist at the ABA, citing NCUA Call Report data.
“These 10 credit unions accounted for almost 18% of the industry's assets.
In aggregate, provisions for loan and lease losses grew by 47.2%. Seattle-based BECU posted the largest year-over-year percentage change in provisions for loan and lease losses of almost 389%, Leggett stated. BECU’s core membership is employees of Boeing, which has announced cutbacks due to the near standstill in the airline industry.
Net income fell by a combined 55% year-over-year at the 10 credit unions. Two credit unions reported a year-over-year increase in net income, while two credit unions posted losses in the first quarter of 2020 after posting positive earnings a year earlier. The credit union with the largest year-over-year percentage decline in net income was Chicago-based Alliant Credit Union of 341%.
Allowance for loan and lease losses grew year-over-year by a combined 19.5 percent. Alliant CU posted the largest year-over-year percentage change, followed by Pentagon FCU in Virginia.