Credit Union Assets, Shares, and Deposits Grow in Fourth Quarter
NCUA Releases 2022 Fourth Quarter Credit Union System Performance Data
ALEXANDRIA, Va. (March 8, 2023) – According to the latest financial performance data released today by the National Credit Union Administration, total assets in federally insured credit unions rose by $108 billion, or 5.2 percent, to $2.17 trillion over the year ending in the fourth quarter of 2022. Insured shares and deposits grew $50 billion, or 3.1 percent, to $1.68 trillion.
“In terms of overall performance, federally insured credit unions remained on a solid footing last year. Total loans, assets, and insured shares increased, and capital levels remained strong,” Chairman Todd M. Harper said. “Economic activity, however, has begun to cool. As rates increase in the current economic environment, so does the associated risk that makes short-term liquidity events possible. The potential for sudden changes in either inflation, the rate environment, or the economy means that credit unions must remain nimble in the months ahead.”
Highlights from the NCUA’s Quarterly Data Summary Report (opens new window) for the fourth quarter of 2022 include:
The credit union system’s net worth increased by $21.4 billion, or 10.1 percent, over the year to $232.9 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.74 percent in the fourth quarter of 2022, up from 10.26 percent one year earlier.
Total shares and deposits rose by $61.3 billion, or 3.4 percent, over the year to $1.85 trillion in the fourth quarter of 2022.
The return on average assets for federally insured credit unions was 89 basis points in 2022, down from 107 basis points in 2021. The median return on average assets across all federally insured credit unions was 51 basis points, up 1 basis point from 2021.
Total loans outstanding increased $251 billion, or 20.0 percent, over the year to $1.51 trillion. The average outstanding loan balance in the fourth quarter of 2022 was $17,141, up $1,022, or 6.3 percent, from one year earlier.
The delinquency rate at federally insured credit unions was 61 basis points in the fourth quarter of 2022, up 12 basis points from one year earlier. The net charge-off ratio was 34 basis points, up 8 basis points compared with the fourth quarter of 2021.
The number of federally insured credit unions declined to 4,760 in the fourth quarter of 2022, from 4,942 in the fourth quarter of 2021. In the fourth quarter of 2022, there were 2,980 federal credit unions and 1,780 federally insured, state-chartered credit unions. The year-over-year decline is consistent with long-running industry consolidation trends.
Federally insured credit unions added 5.8 million members over the year, and credit union membership in these institutions reached 135.3 million in the fourth quarter of 2022.
The NCUA makes credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries and detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions that filed a call report as of December 31, 2022, including key metrics.