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Growth in Lending, Assets, Insured Shares Reported in First Quarter of 2022

June 2022
Growth in Lending, Assets, Insured Shares Reported in First Quarter of 2022

NCUA Releases Credit Union System Performance Data

ALEXANDRIA, Va. (June 7, 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 $136 billion, or 11.7 percent, over the year ending in the first quarter of 2022, to $1.30 trillion. During the same period, total assets rose by $169 billion, or 8.7 percent, to $2.12 trillion. Insured shares and deposits rose $125 billion, or 8.0 percent, to $1.69 trillion, from one year earlier.

“Overall, federally insured credit unions continued to perform well in the first quarter of 2022,” said NCUA Chairman Todd M. Harper. “Lending remained strong, and we continued to see low delinquency and charge-off rates. That said, ongoing supply chain disruptions, rising interest rates, inflationary pressures, and geopolitical turmoil will likely combine to lower earnings, loan growth, and credit quality in the months ahead. Credit unions, therefore, must remain nimble to navigate through this challenging economic environment.”

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 first quarter of 2022. As of March 31, 2022, there were 4,903 federally insured credit unions with 131.0 million members.

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

  • Net income for federally insured credit unions in the first quarter of 2022 totaled $18.1 billion at an annual rate, down $1.6 billion, or 8.2 percent, from the first quarter of 2021. Interest income rose $3.3 billion, or 5.7 percent, over the year to $61.0 billion. Non-interest income fell $2.0 billion, or 7.5 percent, to $24.3 billion, largely due to a drop in other income.
  • The credit union system’s provision for loan and lease losses or credit loss expense was little changed at $2.9 billion at an annual rate in the first quarter of 2022.
  • Total loans outstanding increased $136.2 billion, or 11.7 percent, over the year, to $1.30 trillion. Credit union loan balances rose in most major categories compared with the first quarter of 2021.
  • The delinquency rate at federally insured credit unions was 42 basis points in the first quarter of 2022, down 4 basis points compared with the first quarter of 2021. Loan performance was mixed across major categories.
  • Credit union shares and deposits rose by $157.9 billion, or 9.3 percent, over the year to $1.85 trillion in the first quarter of 2022. Regular shares increased $60.1 billion, or 9.6 percent, to $686.1 billion. Other deposits increased $37.0 billion, or 5.0 percent, to $777.7 billion, led by money market accounts, which were up $61.7 billion, or 17.1 percent.
  • The credit union system’s net worth increased by $21.1 billion, or 10.8 percent, over the year to $216.4 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.22 percent in the first quarter of 2022, up from 10.02 percent one year earlier.

Additionally, the NCUA made several changes to the Credit Union Data Summary to reflect the agency’s recent redesign of the Call Report. A table summarizing these changes is available in the Notes to Users.

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 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 March 31, 2022, including key metrics.

Todd M. Harper