September 18, 2023

Q2 CU trends reveal continued net worth growth

CU TrendsNAFCU’s latest CU Industry Trends report showed the industry’s net worth ratio is up over 40 basis points from a year ago. Additionally, industry consolidation slowed in the second quarter while member and loan growth slowed slightly over the past three months.

In addition, NAFCU's member-only CU Performance Benchmark and Operating Expense reports were recently sent to credit unions and are now available for download. These reports provide credit unions with individualized financial performance and expense analyses based on the most recent call report data.

Industry earnings dropped during the second quarter, partly reflecting the rising expenses for loan loss provisions. Rising interest rates have also caused a decrease in investment valuations, which are down over 10 percent since June 2020.

Other key data from the second quarter trends report found that:

·       Alabama, Arizona, Florida, and Idaho saw the highest member growth; and

·       Alabama, South Dakota, Utah, and Wisconsin saw the highest loan growth.

NAFCU’s CU Industry Trends is a quarterly report of the latest trends among credit unions and is sent to members only. It is designed to help credit unions identify patterns in industry performance, and to promote comparisons with their own institutions. The report delivers key trends based on NCUA data, both at the industry level and broken down by region, state, and asset class.

These reports, composed by NAFCU's award-winning research team, are useful tools for tracking credit unions' progress and comparing it against peer averages. Access more of NAFCU's research products here.