Credit Union Assets and Loans Grow, Delinquencies Increase, Net Income Down

NCUA Releases Second Quarter 2024 Credit Union System Performance Data

ALEXANDRIA, Va. (Sept. 5, 2024) – According to the latest financial performance data released today by the National Credit Union Administration, total assets in federally insured credit unions rose by $79 billion, or 3.5 percent, over the year ending in the second quarter of 2024 to $2.3 trillion. The delinquency rate at federally insured credit unions was 84 basis points in the second quarter of 2024, up 21 basis points compared with the second quarter of 2023. Net income for federally insured credit unions in the first half of 2024 totaled $15.7 billion at an annual rate, down $1.8 billion, or 10.1 percent, from the first half of 2023.

“The credit union system overall remains largely stable in its performance and is relatively resilient against potential economic disruptions. However, challenges persist across the system and at specific institutions,” Chairman Todd M. Harper said. “Notably, an increasing segment of credit union membership continues to experience financial strain as evidenced by a steady increase in the loan delinquency rate, charge offs, and borrowing using the NCUA’s payday alternative loan product. While interest rate and liquidity risks have ebbed recently, we are seeing growing signs of concern in loan performance, capital, and earnings as deposit levels have dropped. Credit union managers must continue to monitor their institution’s performance and balance sheets and act expeditiously to prevent small anomalies from growing into big problems.”

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 second quarter of 2024. As of June 30, there were 4,533 federally insured credit unions with 141.0 million members.

Federally insured credit unions with more than $1 billion in assets are required to disclose, separately, income from overdraft and nonsufficient funds fees. For year-to-date, these large credit unions reported a total $1.8 billion in overdraft and NSF fees. For more information on credit unions’ collection and reporting of overdraft and NSF fees, see Appendix 2 of the Quarterly Data Summary Report.

Highlights from the NCUA’s Quarterly Data Summary Report for the second quarter of 2024 include:

• Total loans outstanding increased $56.1 billion, or 3.6 percent, over the year to $1.62 trillion.
• Interest income rose $19.9 billion, or 21.6 percent, over the year to $112.3 billion annualized. Non-interest income rose $2.6 billion, or 10.6 percent, to $27.1 billion annualized, largely reflecting an increase in other non-interest income.
• The credit union system’s provision for loan and lease losses or credit loss expense increased $3.8 billion, or 41.4 percent, over the year to $13.0 billion at an annual rate in the first half of 2024.
• Insured shares and deposits rose $36 billion, or 2.1 percent, to $1.76 trillion, from one year earlier. Total shares and deposits rose by $49.0 billion, or 2.6 percent, over the year to $1.93 trillion in the second quarter of 2024. Regular shares declined by $50.0 billion, or 8.1 percent, to $564.1 billion. Other deposits increased by $105.8 billion, or 12.0 percent, to $985.7 billion, led by share certificate accounts, which grew $123.8 billion, or 30.6 percent, over the year to $528.2 billion.
• The credit union system’s net worth increased by $13.3 billion, or 5.6 percent, over the year to $249.0 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.84 percent in the second quarter of 2024, up from 10.62 percent one year earlier.

The NCUA makes credit union system performance data available online in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries as well as 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 June 30, 2024, including key metrics.