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CUs see growth in Q1
Federally-insured credit unions (FICUs) saw growth in total assets, insured shares and deposits, outstanding loans, and membership during the first quarter of 2023, according to NCUA call report data. NCUA Chairman Todd Harper acknowledged the “good news,” but cautioned credit unions to stay alert of potential economic challenges.
NAFCU’s research team provides credit unions with regular analysis on industry and economic trends, which can be accessed anytime online.
Over the year ending in the first quarter of 2023, total loans outstanding in FICUs increased $229 billion, (17.6 percent) to $1.53 trillion. During the same period, total assets rose $93 billion (4.4 percent) to $2.21 trillion, and insured shares and deposits rose $39 billion (2.3 percent) to $1.73 trillion.
The amount of credit union members also increased to 136.6 million members.
Of note, the current expected credit loss (CECL) standard went into effect for most credit unions Jan. 1, which is reflected in this report’s data. Other highlights from the 2023 first quarter data:
- the credit union system’s net worth increased $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, up from 10.21 percent one year earlier;
- 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 shares and deposits rose $37.6 billion, or 2 percent, over the year to $1.89 trillion in the first quarter – led by growth in share certificate accounts, which were up 50.1 percent over the year;
- the delinquency rate at FICUs was 53 basis points, up 10 basis points from one year earlier, and the net-charge-off ratio was 52 basis points, up 24 basis points compared with the first quarter of 2022; and
- the number of FICUs declined to 4,712 in the first quarter of 2023, from 4,903 in the first quarter of 2022. The year-over-year decline is consistent with long-running industry consolidation trends.