‘Trends’ shows big rise in CU loan quality
NAFCU Senior Economist Curt Long
Sept. 6, 2013 – Federally insured credit unions logged dramatic improvements in loan quality over the first half of 2013, according to data provided in this month’s NAFCU CU Industry Trends.
The report, from NAFCU’s research team, shows loan delinquencies, charge-offs and the “Texas” ratio have nearly returned to pre-crisis levels and led to a decline in the provision for loan loss expense.
The “coverage” ratio – loan loss reserves divided by delinquencies – is up markedly from year-end 2012. “Credit union reserves are at their strongest position in more than a decade,” said NAFCU Senior Economist Curt Long.
NAFCU’s CU Industry Trends, delivered to members Thursday, gives a picture of credit union performance by region, state and asset class.
“Of note, the greatest strides continue to be made in the West, which now has the highest ROA of any region,” Long said. “The greatest loan growth was in the $500 million to $1 billion asset class.”
CU Industry Trends