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NCUA Releases Q4 2017 Credit Union System Performance Data

ALEXANDRIA, Va. (March 5, 2018) – Data on the financial performance of federally insured credit unions in the quarter ending Dec. 31, 2017, are now available from the National Credit Union Administration.

NCUA makes detailed credit union system performance data available on its Credit Union and Call Report Data webpage, including Call Report quarterly summaries and financial performance reports. The agency’s Industry Data page includes a Financial Trends in Federally Insured Credit Unions package illustrating industry trends.

The NCUA has made changes to the quarterly data report to reflect changes in the information collected from credit unions as a result of the agency’s modernization of its member-business lending rule in 2016. A detailed explanation of those changes is available online here.

 

Selected Performance Indicators

  • Total assets in federally insured credit unions rose by $86 billion, or 6.7 percent, over the year ending in the fourth quarter of 2017, to $1.38 trillion.
  • Total loans outstanding increased $88 billion, or 10.1 percent, over the year to $957.3 billion. The average outstanding loan balance in the fourth quarter of 2017 was $14,807, up $565, or 4.0 percent, from one year earlier.
  • The delinquency rate at federally insured credit unions was 81 basis points in the fourth quarter of 2017, down slightly from one year earlier. The net charge-off ratio was 60 basis points, up from 55 basis points in the fourth quarter of 2016.
  • Insured shares and deposits rose $59 billion, or 5.7 percent, over the four quarters ending in the fourth quarter of 2017 to $1.09 trillion.
  • The loan-to-share ratio stood at 82.6 percent in the fourth quarter of 2017, up from 79.5 percent in the fourth quarter of 2016.
  • The credit union system’s net worth ratio was 10.96 percent in the fourth quarter of 2017, compared with 10.89 percent one year earlier.
  • Net income totaled $10.4 billion at an annual rate in the fourth quarter of 2017, up $0.87 billion, or 9.2 percent, from the same period a year ago.
  • The net interest margin for federally insured credit unions was $39.9 billion in the fourth quarter of 2017, or 3.0 percent of average assets. That compares with $36.0 billion, or 2.9 percent of average assets, in the fourth quarter of 2016.
  • The return on average assets for federally insured credit unions was 78 basis points over the year ending in the fourth quarter of 2017, up slightly from 76 basis points in the fourth quarter of 2016. The median return on average assets across all federally insured credit unions was 38 basis points, up 4 basis points from the fourth quarter of 2016.
  • The number of federally insured credit unions declined to 5,573 in the fourth quarter of 2017 from 5,785 in the fourth quarter of 2016. In the fourth quarter of 2017, there were 3,499 federal credit unions and 2,074 federally insured, state-chartered credit unions. The year-over-year decline is consistent with long-running industry consolidation trends.
  • The number of credit unions with a low-income designation rose to 2,542 in the fourth quarter of 2017 from 2,491 one year earlier.
  • Federally insured credit unions added 4.5 million members over the year, and credit union membership in these institutions reached 111.3 million in the fourth quarter of 2017.
 

Balance Sheet Details

Assets

  • Total assets in federally insured credit unions rose by $86 billion, or 6.7 percent, over the year to $1.38 trillion in the fourth quarter of 2017.
  • Cash and equivalents (assets with maturity of three months or less) rose $0.9 billion, or 1.0 percent, to $98.7 billion.
  • Total investments (instruments with maturities in excess of three months) fell $7.2 billion, or 2.7 percent, to $261.9 billion.
    • Investments with maturities of less than one year declined $2.8 billion, or 3.7 percent, to $72.8 billion.
    • Investments with maturities of one to three years declined $8.5 billion, or 9.0 percent, to $86.4 billion.
    • Investments with maturities of three to five years increased $3.1 billion, or 4.8 percent, to $67.2 billion.
    • Investments with maturities of five to 10 years were up $0.8 billion, or 2.8 percent, to $31.5 billion.
    • Investments with maturities greater than 10 years rose $0.1 billion, or 3.8 percent, to $4.1 billion.
  • Total loans outstanding increased $88 billion, or 10.1 percent, over the year to $957.3 billion. Credit union loan balances rose over the year in every major category, compared with the fourth quarter of 2016.
    • Real estate loans rose $41.8 billion, or 9.7 percent, over the year to $472.9 billion in the fourth quarter of 2017.
    • Auto loans increased $34.2 billion, or 11.4 percent, to $332.6 billion. Used auto loans rose $18.6 billion, or 10.2 percent, to $200.4 billion. New auto loans rose $15.6 billion, or 13.3 percent, to $132.2 billion.
    • Credit card balances rose $4.9 billion, or 9.3 percent, to $57.5 billion
    • Non-federally guaranteed student loans rose $0.5 billion, or 14.2 percent, to $4.4 billion.
    • The Call Report for the quarter ending on Sept. 30, 2017, was redesigned to reflect the new rule on member business loans. As a result, net member business loan balances, including unfunded commitments, are not available after the second quarter of 2017. Commercial loans, including unfunded commitments, totaled $68.2 billion in the fourth quarter of 2017; data are unavailable prior to 2017Q3. Commercial loans are not directly comparable to member business loans.
  • The delinquency rate at federally insured credit unions was 81 basis points in the fourth quarter of 2017, down from 83 basis points one year earlier. Loan performance improved in most categories:
    • The delinquency rate on fixed real estate loans was 53 basis points in the fourth quarter, down from 54 basis points one year earlier.
    • The credit card delinquency rate was 129 basis points, up from 114 basis points in the fourth quarter of 2016.
    • For auto loans, the delinquency rate was 70 basis points in the fourth quarter of 2017 compared with 72 basis points one year earlier.
    • The delinquency rate for commercial loans, including unfunded commitments, was 154 basis points in the fourth quarter of 2017; data for quarters prior to 2017Q3 are not available.

    The net charge-off ratio for all federally insured credit unions was 60 basis points in the fourth quarter of 2017, up from 55 basis points in the fourth quarter of 2016.

Liabilities and New Worth

  • Credit union shares and deposits rose by $66.9 billion, or 6.1 percent, over the year to $1.16 trillion in the fourth quarter of 2017. Regular shares rose $28.4 billion, or 7.2 percent, to $421.5 billion. Other deposits increased $24.4 billion, or 4.5 percent, to $569.5 billion, led by share certificate accounts, which were up $12.7 billion, or 6.4 percent, and money market accounts, which rose $10.4 billion, or 4.2 percent.
  • The credit union system’s net worth increased by $10.3 billion, or 7.3 percent, over the year to $151.1 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.96 percent in the fourth quarter of 2017, up from 10.89 percent one year earlier.
 

Income Statement Details

  • Net income for federally insured credit unions in the fourth quarter of 2017 totaled $10.4 billion at an annualized rate, up $0.9 billion, or 9.2 percent, from the fourth quarter of 2016. Interest income rose $4.9 billion, or 11.5 percent, over the year to $47.5 billion, and non-interest income increased $0.7 billion, or 4.2 percent, to $18.1 billion.
  • Interest expense totaled $7.6 billion annualized in the fourth quarter of 2017, up $1.0 billion, or 15.0 percent, from one year earlier. Non-interest expenses grew $2.4 billion, or 6.3 percent, over the year to $41.2 billion in the fourth quarter. Rising labor expenses, which were up $1.4 billion, or 6.9 percent, accounted for more than half of the increase in non-interest expenses.
  • The aggregate net interest margin widened $3.9 billion over the year, or 10.9 percent, to $39.9 billion at an annual rate in the fourth quarter of 2017.
  • The credit union system’s provision for loan and lease losses rose $1.3 billion over the year, or 25.9 percent, to $6.4 billion at an annual rate in the fourth quarter of 2017.
 

Performance by Asset Category

Consistent with long-running trends, credit unions with assets of at least $1 billion reported the strongest growth in loans, membership, and net worth over the year ending in the fourth quarter of 2017. Credit unions with less than $50 million in assets reported declines in loans, membership, and net worth over the year.

  • The number of federally insured credit unions with assets of at least $1 billion increased to 287 in the fourth quarter of 2017 from 272 in the fourth quarter of 2016. These 284 credit unions held $875.6 billion in assets, or 64 percent of total system assets. Credit unions in this category reported loan growth of 13.7 percent. Membership rose 9.0 percent. Net worth increased 11.4 percent.
  • The number of federally insured credit unions with assets of at least $500 million but less than $1 billion increased to 244 in the fourth quarter of 2017 from 229 in the fourth quarter of 2016. These 244 credit unions held $172.7 billion in total assets, or 13 percent of total system assets. Credit unions in this category reported loan growth of 10.1 percent. Membership increased 6.3 percent. Net worth increased 6.4 percent.
  • The number of federally insured credit unions with at least $100 million but less than $500 million in assets declined to 1,026 in the fourth quarter of 2017 from 1,050 in the fourth quarter of 2016. These 1,026 credit unions held $229.3 billion in total assets, or 17 percent of total system assets. Credit unions in this category reported loan growth of 1.0 percent. Membership declined 3.8 percent. Net worth fell 0.9 percent.
  • The number of federally insured credit unions with at least $50 million but less than $100 million in assets fell to 709 in the fourth quarter of 2017 from 724 in the fourth quarter of 2016. These 709 credit unions held $50.6 billion in total assets, or 4 percent of total system assets. Credit unions in this category reported a 0.1 percent decline in total loans. Membership declined 4.3 percent. Net worth decreased 0.7 percent.
  • The number of federally insured credit unions with assets of at least $10 million but less than $50 million declined to 1,774 in the fourth quarter of 2017 from 1,851 in the fourth quarter of 2016. These credit unions held $44.2 billion in assets, or 3 percent of total system assets. Credit unions in this category reported a 0.9 percent decline in loans. Membership declined 5.8 percent. Net worth declined 2.8 percent.
  • The number of federally insured credit unions with less than $10 million in assets declined to 1,533 in the fourth quarter of 2017 from 1,659 in the fourth quarter of 2016. These credit unions held $6.4 billion in assets, or less than 1.0 percent of total system assets. Credit unions in this category reported a 5.5 percent decline in loans. Membership fell 8.8 percent. Net worth declined 5.0 percent.


NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.

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703.518.6330
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Contacts:

John Fairbanks
Office: 703.518.6336
Mobile: 571.438.0801
jfairbanks@ncua.gov

Ben C. Hardaway
Office: 703.518.6333
Mobile: 703.298.5223
bhardaway@ncua.gov

Kenzie Snowden
Office: 703.518.6334
ksnowden@ncua.gov

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9/20/2018 5:52 PM