NCUA’s latest Quarterly Credit Union Data Summary provides an overview of the financial performance of federally insured credit unions based on information reported by credit unions in the second quarter of 2020.
Data for federally insured credit unions as of the mid-year mark shows federally insured credit unions added 4 million members over the year, and credit union membership in these institutions reached 122.3 million in the second quarter of 2020.
Data also shows total assets rose by $229 billion, or 15.1%, over the year ending in the second quarter of 2020, to $1.75 trillion. The data shows that as of June 30, there were 5,164 federally insured credit unions – fewer than in June, 2019, when there were 5,308 federally insured credit unions, but consistent with long-running industry consolidation trends.
Other highlights from the report show:
— total loans outstanding increased $70 billion, or 6.6%, over the year to $1.1 trillion;
— the average outstanding loan balance in the second quarter of 2020 was $16,263, up $807, or 5.2%, from one year earlier;
— the delinquency rate at federally insured credit unions was 58 basis points in the second quarter of 2020, down 5 basis points from one year earlier;
— the net charge-off ratio was 53 basis points, down from 56 basis points in the second quarter of 2019;
— insured shares and deposits rose $188 billion, or 15.8%, over the year ending in the second quarter of 2020, to $1.4 trillion;
— the loan-to-share ratio stood at 76.3% in the second quarter of 2020, down from 83.3% in the second quarter of 2019;
— the credit union system’s net worth ratio was 10.46% in the second quarter of 2020, compared with 11.27% one year earlier;
— net income totaled $9.4 billion at an annual rate in the second quarter of 2020, down $5.0 billion, or 34.6%, from the same period a year ago;
— the net interest margin for federally insured credit unions was $47.8 billion in the second quarter of 2020, or 2.88% of average assets, compared with $47.3 billion, or 3.18% of average assets, in the second quarter of 2019;
— the return on average assets for federally insured credit unions was 57 basis points in the second quarter of 2020, down from 97 basis points in the second quarter of 2019;
— the median return on average assets across all federally insured credit unions was 39 basis points, down 24 basis points from the second quarter of 2019; and
— the number of credit unions with a low-income designation rose to 2,652 in the second quarter of 2020 from 2,618 one year earlier.
To view the full data summary, visit the NCUA website.
