The National Credit Union Administration is reporting that federally insured credit union (FICU) assets grew by 7.8 percent in 2019 to $1.57 trillion.
Total loans were up 6.2 percent year-over-year to $1.1 trillion.
Shares and deposits at FICUs grew by 8.2 percent in 2019 to $1.32 trillion.
Due to shares (deposits) growing faster than loans, the loan-to-share ratio fell from 85.6 percent at the end of 2018 to 84 percent at the end of 2019.
Membership in FICUs increased by 4.2 million members during 2019 to 120.4 million as of the end of the fourth quarter 2019.
Net Income Rose by 8.8 Percent in 2019
FICUs reported a net income of $14.1 billion for 2019 -- up 8.8 percent from 2018.
During 2019, total interest income was up 13.4 percent, provisions for loan and lease losses or total credit loss expenses fell by less than 1 percent, interest expense jumped by 38.4 percent, non-interest income increased by 7.3 percent, and non-interest expense rose by 8.7 percent.
The industry's return on average assets was 94 basis points at the end of 2019, which was up 2 basis points from a year ago. The median return on average assets rose by 4 basis points in 2019 to 60 basis points.
Factors contributing to the year-over-year improvement in return on average assets were higher net interest margins, a decline in provisions for loan and lease losses, and higher non-operating income. Factors that negatively affected return on average assets were lower fee and other income and higher operating expenses.
FICU Net Worth Ratio Up from a Year Ago
The industry's net worth increased by 8.5 percent in 2019 to $178.3 billion on the growth in net income.
Secondary capital and subordinated debt counting as net worth increased by 14 percent in 2019 to $301 million at the end of 2019.
The industry's aggregate net worth ratio grew by 7 basis points during 2019 to 11.37 percent as of December 2019.
The vast majority (98.55 percent) of all FICUs have a net worth ratio of at least 7 percent of assets. Only 37 credit unions have a net worth ratio below 6 percent with 3 credit unions having a net worth ratio below 2 percent.
Delinquency Rate Unchanged from a Year Ago, Net Charge-Off Rate Slightly Lower
Total delinquent loans were $7.85 billion at the end of 2019 -- up from $7.3 billion at the end of the third quarter of 2019 and $7.4 billion at the end of 2018. The percent of loans 60 days or more past due were unchanged at 0.71 percent as of December 2019 from a year ago; but up from 0.67 percent at the end of the third quarter of 2019.
Net charge-offs were up 5.02 percent for 2019 to $6.05 billion. The net charge-off rate as of December 2019 was 0.56 percent -- down 2 basis points from a year ago, but up 1 basis points from the prior quarter.
Allowances for loan and lease losses increased by 3.2 percent during 2019 to almost $9.57 billion. The industry's coverage ratio (allowance for loan and lease losses divided by delinquent loans) was 121.83 percent at the end of 2019, down from 124.78 percent at the end of 2018.
Large CUs Outperform Smaller CUs
FICUs with at least $1 billion in assets reported the strongest growth in loans, net worth, and membership in 2019, while FICUs with less than $500 million in assets recorded declines in those categories over the year.
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