Delinquency rates at credit unions rose in the third quarter, and net income for the cooperative financial institutions fell, according to performance data released Thursday by their federal regulator.
According to the third-quarter performance results released by the National Credit Union Administration (NCUA), the delinquency rate at federally insured credit unions was 91 basis points, up 19 basis points from one year earlier at the end of the quarter.
Net income for the credit unions in the first three quarters of 2024 totaled $15.8 billion at an annual rate, down $0.8 billion, or 4.7%, from the first three quarters of 2023, NCUA said.
In a statement, NCUA Board Chairman Todd Harper observed that credit card and auto loan delinquencies remained “especially elevated.”
“The NCUA, therefore, continues to urge credit unions to carefully manage their credit risks in this time of growing financial stress among members,” he said. Harper also noted called loan growth in the third quarter “anemic,” after loans outstanding advanced by only 2.6% over the year ending in the third quarter of 2024, to $1.63 trillion.
Total assets rose by $82 billion, or 3.7%, to $2.31 trillion during the same period, the NCUA reported.
As for savings (shares and deposits), the NCUA noted that while they grew in the aggregate (by 3.1% over the year to $1.93 trillion), regular savings shares fell by $35.0 billion, or 6%, to $553.0 billion. Other deposits increased by 10.8%, to $1.01 trillion, led by share certificate accounts, which grew by 24% over the year to $551.0 billion.
Net worth for credit unions, however, increased by 5.8% over the year to $252.9 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.94% in the third quarter of 2024, up from 10.72% a year earlier, the NCUA said.
Credit Unions’ Loans, Assets, and Delinquencies Rise; Net Income Down
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