Delinquencies at credit unions in 2024 rose by 15 basis points (bp), to 0.98% of loans, compared to the previous year, their federal regulator said Tuesday in releasing year-end financial performance statistics.
National Credit Union Administration (NCUA) Board Chairman Kyle Hauptman said the agency is “closely watching” interest rates, delinquency rates, and inflation “and their effects on the economy.”
“Credit union managers and directors should prepare for a variety of interest rate scenarios and economic conditions,” he said.
The NCUA noted that assets rose some (by $2.3% to $2.31 trillion) and that savings (insured shares and deposits) inched up 3.4%.
However, the numbers show that the return on average assets (ROAA) was just 63 bp in 2024, down from 68 bp from the prior year, the NCUA numbers show. Net income was down 3.6% from 2024 (to $14.4 billion).
Total loans outstanding increased 2.6% (by $42 billion) in 2024, to $1.65 trillion. However, along the lines of delinquencies, the net charge-off ratio was 80 bp in the fourth quarter of 2024, up 19 bp compared with the fourth quarter of 2023, NCUA said.
Credit unions’ net worth, overall, grew by 5.9% in 2024 to $255.3 billion, NCUA said.
Credit unions added 3.1 million memberships in 2024, NCUA reported, and counted 142.3 million at year’s end. However, the number of credit unions was down to 4,455 at year’s end (from 4,604 the year before). NCUA asserted that the year-over-year decline “is consistent with long-running industry consolidation trends.”
Credit Union Assets, Delinquencies, Shares and Deposits Grow in the Fourth Quarter