Friday, December 6, 2019

FICUs Post Solid Financials in Third Quarter 2019

The National Credit Union Administration is reporting that assets, loans, and deposits at federally insured credit unions (FICUs) increased during the third quarter 2019.

At the end of the third quarter of 2019,
  • assets were $1.54 trillion -- up from $1.52 trillion at the end of second quarter
  • loans were $1.087 trillion -- up $20.5 billion during the quarter; and 
  • deposits and shares were $1.29 trillion -- up $12.5 billion during the quarter.
Because loans grew faster than deposits, the loan-to-share ratio rose during the quarter to 84.11 percent from 83.33 percent.

The total number of FICUs was 5,281 -- down 94 from the start of this year and 27 during the third quarter.

Net income at FICUs was $11 billion through the first nine months of 2019.

The industry's return on average assets (ROA) was 0.98 percent -- up 1 basis point from the end of the previous quarter.

Factors improving profitability were higher net interest margins and Fee and other income, while higher operating expenses had a negative impact on the industry's ROA.

Net interest margins at credit unions edged higher to 3.19 percent as of September 2019 from 3.18 percent as of June 2019. Fee and other income as a percent of averaged assets rose 3 basis points during the quarter to 1.35 percent. Higher operating expenses eroded profitability of FICUs by 3 basis points.

The aggregate net worth for FICUs was $175.2 billion as of the end of the third quarter. This was up $3.8 billion during the quarter. As of September 2019, the industry's net worth ratio was 11.39 percent -- up 12 basis points from the prior quarter.

As of September 2019, 98.41 percent of credit unions had a net worth ratio of at least 7 percent -- the requirement for being well capitalized. Six credit unions had a net worth ratio below 2 percent as of September 2019.

Delinquent loans were $7.3 billion as of September 2019. This was up from $6.8 billion as of June 2019. As a result, the delinquency rate rose by 4 basis points during the quarter to 0.67 percent at the end of the third quarter.

Net charge-offs were $4.4 billion during the first 3 quarters of 2019. As of September 2019, the net charge-off rate was 0.55 percent -- almost unchanged from the prior quarter at 0.56 percent.

Chart Pack.

Read the quarterly summary.
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