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Continued Growth in Lending, Assets, Insured Shares Reported in Third Quarter

December 2022
Continued Growth in Lending, Assets, Insured Shares Reported in Third Quarter

NCUA Releases Credit Union System Performance Data for the Third Quarter of 2022

ALEXANDRIA, Va. (Dec. 8, 2022) – According to the latest financial performance data released today by the National Credit Union Administration, total loans outstanding in federally insured credit unions increased $235 billion, or 19.2 percent, over the year ending in the third quarter of 2022, to $1.46 trillion. During the same period, total assets rose by $132 billion, or 6.6 percent, to $2.15 trillion. Also, insured shares and deposits increased $89 billion, or 5.6 percent, to $1.69 trillion, from one year earlier.

“Federally insured credit unions continue to perform well overall, and that’s good news,” NCUA Chairman Todd M. Harper said. “However, with ongoing inflationary pressures and rising interest rates, a credit union’s ability to manage its interest rate and liquidity risk exposures will remain a crucial factor in its performance for the remainder of the year and into 2023. Credit unions of all types and sizes must remain diligent in managing their balance sheets, financial performance, and liquidity, interest rate, and credit risk levels as we navigate the challenging economic environment ahead of us.”

The NCUA’s Quarterly Credit Union Data Summary provides an overview of the financial performance of federally insured credit unions based on information reported to the agency in the third quarter of 2022. As of September 30, 2022, there were 4,813 federally insured credit unions with 134.3 million members.

Highlights from the NCUA’s Quarterly Data Summary Report for the third quarter of 2022 include:

  • Net income for federally insured credit unions totaled $18.5 billion at an annual rate in the first three quarters of 2022, down $3.0 billion, or 14.1 percent, from the same period a year ago. Interest income rose $9.0 billion, or 15.3 percent, over the year to $67.4 billion. Non-interest income fell $3.4 billion, or 12.8 percent, to $23.4 billion, largely due to a drop in other income.
  • The credit union system’s provision for loan and lease losses or credit loss expenses increased $3.2 billion, or 257.3 percent, to $4.4 billion at an annual rate in the first three quarters of 2022.
  • Total loans outstanding increased $234.9 billion, or 19.2 percent, over the year, to $1.46 trillion. Credit union loan balances rose in all major categories compared with the third quarter of 2021.
  • The delinquency rate at federally insured credit unions was 53 basis points in the third quarter of 2022, up 7 basis points compared with the third quarter of 2021.
  • Credit union shares and deposits rose by $110.9 billion, or 6.3 percent, over the year to $1.86 trillion in the third quarter of 2022. Regular shares increased $39.5 billion, or 6.2 percent, to $679.5 billion. Other deposits increased $37.2 billion, or 4.9 percent, to $791.5 billion, led by money market accounts, which grew $24.0 billion, or 6.1 percent, over the year.
  • The credit union system’s net worth increased by $21.3 billion, or 10.3 percent, over the year to $227.8 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.59 percent in the third quarter of 2022, up from 10.23 percent one year earlier.

The NCUA makes credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries and detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions as of September 30, 2022, including key metrics.

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