Total assets in federally-insured credit unions jumped nearly 9 percent in the first quarter of this year to $2.12 trillion, according to the latest financial performance data released June 7 by the National Credit Union Administration. The increase was lower than the 12 percent increase in 4Q 2021 to $2.06 trillion.
Credit unions grew in other key areas during the first quarter as well: Total loans increased $136 billion or 11.7 percent to $1.3 trillion. Insured shares and deposits increased $125 billion or 8 percent to nearly $1.7 trillion. The credit union system’s year-over-year net worth jumped by $21.1 billion or nearly 11 percent to $216.4 billion.
Net income dropped 8.2 percent to $18.1 billion from 1Q 2021, but interest income increased $3.3 billion or 5.7 percent over the year to $61 billion. Year-over-year CU delinquency rates fell four basis points to 42, and loan performance was mixed across categories, according to the NCUA.
“Overall, federally insured credit unions continued to perform well in the first quarter of 2022,” said NCUA Chair 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 summary tracked the more than 4,900 federally-insured credit unions with 131 million members.