Credit Union Lending, Assets, Insured Shares Continue to Grow
NCUA Releases First Quarter 2023 Credit Union System Performance Data
According to the latest financial performance data released today by the National Credit Union Administration, total loans outstanding in federally insured credit unions increased $229 billion, or 17.6 percent, over the year ending in the first quarter of 2023, to $1.53 trillion. During the same period, total assets rose by $93 billion, or 4.4 percent, to $2.21 trillion. Insured shares and deposits rose $39 billion, or 2.3 percent, to $1.73 trillion, from one year earlier.
“Within the credit union system, we have experienced continued growth in lending, along with increases in assets and insured shares. This is good news,” NCUA Chairman Todd M. Harper said. “But, warning signs are also flashing on the horizon, like the rise in home equity lines of credit, increases in credit card balances, and higher delinquency rates. Credit unions must remain nimble in this high interest rate environment and work with members to navigate through any economic challenges that lie ahead.”
The NCUA’s 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 2023. As of March 31, 2023, there were 4,712 federally insured credit unions with 136.6 million members.
Highlights from the NCUA’s Quarterly Data Summary Report for the first quarter of 2023 include:
Net income for federally insured credit unions in the first quarter of 2023 totaled $17.7 billion at an annual rate, down $0.6 billion, or 3.0 percent, from the first quarter of 2022. Interest income rose $28.0 billion, or 45.8 percent, over the year to $89.0 billion annualized. Non-interest income declined $0.3 billion, or 1.3 percent, to $24.0 billion annualized, partly due to a drop in other income.
The credit union system’s provision for loan and lease losses or credit loss expense increased $5.9 billion, or 203.3 percent, to $8.8 billion at an annual rate in the first quarter of 2023.
Total loans outstanding increased $228.6 billion, or 17.6 percent, over the year, to $1.53 trillion. Credit union loan balances rose in all major categories compared with the first quarter of 2022.
The delinquency rate at federally insured credit unions was 53 basis points in the first quarter of 2023, up 10 basis points compared with the first quarter of 2022.
Total shares and deposits rose by $37.6 billion, or 2.0 percent, over the year to $1.89 trillion in the first quarter of 2023. Regular shares declined by $44.3 billion, or 6.5 percent, to $641.7 billion. Other deposits increased by $76.3 billion, or 9.8 percent, to $854.0 billion, led by share certificate accounts, which grew $120.8 billion, or 50.1 percent, over the year to $362.2 billion.
The credit union system’s net worth increased by $15.5 billion, or 7.2 percent, over the year to $231.9 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.49 percent in the first quarter of 2023, up from 10.21 percent one year earlier.
“The credit union system currently remains well-capitalized, stable, and well-positioned to handle a broad range of economic possibilities. And consumers should remain confident that their insured share deposits at federally insured credit unions remain safe just as always. No one have ever lost a single penny of insured shares at a federally insured credit union,” Chairman Harper said.
The NCUA makes credit union system performance data available online in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries as well as detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions as of March 31, 2023, including key metrics.