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Year-over-year CU loan growth hits 20-year high according to NCUA Q2 call report data
Corrected:
According to the NCUA's latest call report data, credit unions continued to see strong share and deposit growth during the second quarter of 2022. A similar trend to the last call report data, total loans outstanding in federally insured credit unions in the second quarter rose by 16.2 percent, or $194 billion, to $1.39 trillion over the year, representing the largest year-over-year growth in loans outstanding in at least two decades.
During the same period, total assets climbed by $159 billion, or 8.1 percent, to $2.14 trillion. Insured shares and deposits also grew $110 billion, or 7.0 percent, to $1.69 trillion, from one year earlier.
“These latest quarterly industry performance results point to a growing and overall healthy credit union system that’s facilitating the ability of families to achieve their financial goals,” said Chairman Todd Harper in response to the data.
“But, at the same time, we have also seen declines in the system’s net income and returns on average assets, rapidly rising interest rates and continued inflationary pressures. And, we have identified growing liquidity concerns within the system,” added Harper. “Therefore, credit unions of all types and sizes must remain diligent in managing safety and soundness as we continue to navigate the challenging economic environment ahead of us.”
Additional highlights from the second quarter, which ended on June 30, 2022, include:
- the aggregate net worth ratio – net worth as a percentage of assets – stood at 10.42 percent in the second quarter of 2022, up from 10.16 percent from one year earlier;
- credit union loan balances rose in all major categories, compared with the second quarter of 2021;
- the credit union system’s net worth increased by $21.6 billion, or 10.8 percent, over the year to $222.7 billion;
- insured shares and deposits rose by $139.7 billion, or 8.1 percent, over the year to $1.85 trillion;
- the delinquency rate at federally insured credit unions was 48 basis points in the second quarter of 2022, up 2 basis points compared with the second quarter of 2021; and
- there were 4,853 federally insured credit unions with 132.6 million members at the end of the second quarter.