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(From the NCUA) – According to the latest financial performance data released by the National Credit Union Administration, total loans outstanding in federally insured credit unions increased $194 billion, or 16.2 percent, over the year ending in the second quarter of 2022, to $1.39 trillion. This represents the largest year over year growth in loans outstanding in at least two decades. Credit union loan balances also rose in all major categories, compared with the second quarter of 2021.
During the same period, total assets climbed by $159 billion, or 8.1 percent, to $2.14 trillion. Insured shares and deposits also grew $110 billion, or 7.0 percent, to $1.69 trillion, from one year earlier.
“These latest quarterly industry performance results point to a growing and overall healthy credit union system that’s facilitating the ability of families to achieve their financial goals,” said NCUA Chairman Todd M. Harper. “But, at the same time, we have also seen declines in the system’s net income and returns on average assets, rapidly rising interest rates, and continued inflationary pressures. And, we have identified growing liquidity concerns within the system. Therefore, credit unions of all types and sizes must remain diligent in managing safety and soundness as we continue to navigate the challenging economic environment ahead of us.”
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 second quarter of 2022. As of June 30, 2022, there were 4,853 federally insured credit unions with 132.6 million members.
Additional highlights from the NCUA’s Credit Union Data Summary for the second quarter of 2022 include:
- Net income for federally insured credit unions in the first half of 2022 totaled $18.0 billion at an annual rate, down $3.3 billion, or 15.4 percent, from the first half of 2021.
- Interest income rose $5.7 billion, or 9.8 percent, over the year to $63.6 billion. Non-interest income fell $3.1 billion, or 11.7 percent, to $23.6 billion, largely due to a drop in other income.
- The credit union system’s provision for loan and lease losses or credit loss expense increased $2.1 billion, or 154.8 percent, to $3.4 billion at an annual rate in the first half of 2022.
- The delinquency rate at federally insured credit unions was 48 basis points in the second quarter of 2022, up 2 basis points compared with the second quarter of 2021.
- Credit union shares and deposits rose by $139.7 billion, or 8.1 percent, over the year to $1.85 trillion in the second quarter of 2022. Regular shares increased $62.3 billion, or 9.9 percent, to $689.0 billion. Other deposits increased $37.1 billion, or 5.0 percent, to $782.5 billion, led by money market accounts, which grew $52.2 billion, or 13.9 percent, over the year.
- The credit union system’s net worth increased by $21.6 billion, or 10.8 percent, over the year to $222.7 billion.
- The aggregate net worth ratio—net worth as a percentage of assets—stood at 10.42 percent in the second quarter of 2022, up from 10.16 percent one year earlier.
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 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 June 30, 2022, including key metrics.