The National Credit Union Administration (NCUA) has released its second-quarter 2024 financial performance data for federally insured credit unions. The report indicates a rise in total assets by $79 billion, or 3.5 percent, reaching $2.3 trillion over the year ending in the second quarter of 2024. The delinquency rate increased to 84 basis points, up 21 basis points from the same period in 2023. Net income for the first half of 2024 totaled $15.7 billion annually, a decrease of $1.8 billion or 10.1 percent from the previous year.
“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,” said Chairman Todd M. Harper. “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 based on information reported to the agency for Q2 2024. As of June 30, there were 4,533 federally insured credit unions with a combined membership of 141 million.
Credit unions with assets exceeding $1 billion are required to separately disclose income from overdraft and nonsufficient funds fees; these large institutions reported a total of $1.8 billion in such fees year-to-date.
Key highlights from the NCUA’s report include:
– Total loans outstanding increased by $56.1 billion or 3.6 percent over the year to $1.62 trillion.
– Interest income rose by $19.9 billion or 21.6 percent annually to $112.3 billion.
– Non-interest income increased by $2.6 billion or 10.6 percent annually to $27.1 billion.
– Provision for loan and lease losses increased by $3.8 billion or 41.4 percent annually to $13 billion.
– Insured shares and deposits rose by $36 billion or 2.1 percent over the year to $1.76 trillion.
– Total shares and deposits grew by $49 billion or 2.6 percent over the year to reach $1.93 trillion.
– Regular shares declined by $50 billion or 8.1 percent to stand at $564.l0 million.
– Other deposits increased by $105.l0 million or l2.O0 million led by share certificate accounts which grew by$123.l0 million overtheyearto$528.lO million.
– The net worth ratio stood at lO.B4percentinQ22024upfromlO .62percentoneyear earlier.
The NCUA makes this data available online via its Credit Union Analysis section on NCUA.gov which includes quarterly summaries detailed financial information graphics illustrating trends among federally insured credit unions spreadsheet listing all federally insured credit unions asofJune302024 including key metrics
The NCUA is an independent federal agency createdbytheU.S.Congresstoregulate charter supervise federalcreditunionswiththebackingofthefullfaithandcredittheUnitedStates operatesmanagesNationalCreditUnionShareInsuranceFundinsuringdepositsofover135millionaccountholdersallfederalcreditunionsoverwhelmingmajority state-charteredcreditunionsalso protectsconsumerseducatespublicconsumerprotectionfinancialliteracyissues
Media Inquiries
Joe Adamoli
JAdamoli@ncua.gov
7035186572
