For federally insured credit unions, median asset growth and growth in shares and deposits declined slightly over the year ending in the first quarter of 2023. At the same time, loans outstanding grew at the median, according to the latest Quarterly U.S. Map Review released today by the National Credit Union Administration.
While aggregate assets in federally insured credit unions continued to grow during the year ending in the first quarter of 2023, at the median, assets declined 0.1 percent. In the year ending in the first quarter of 2022, the median asset growth rate was 5.2 percent. Nationally, shares and deposits continued to increase in the aggregate during the year ending in the first quarter of 2023, while the median growth in shares and deposits was negative 1.0 percent. In the year ending in the first quarter of 2022, the median growth rate in shares and deposits was 5.7 percent.
Loans outstanding rose 13.3 percent at the median over the year ending in the first quarter of 2023. During the previous year, loans grew by 4.6 percent at the median. The median total delinquency rate among federally insured credit unions was 38 basis points at the end of the first quarter of 2023, compared with 32 basis points in the first quarter of 2022.
Overall, 85 percent of federally insured credit unions had positive net income in the first quarter of 2023, compared with 77 percent in the first quarter of 2022. At least 70 percent of credit unions in every state and the District of Columbia had positive net income in the first quarter of 2023. The median annualized return on average assets at federally insured credit unions was 61 basis points in the first quarter of 2023, compared with 42 basis points in the first quarter of 2022.
The NCUA’s Quarterly U.S. Map Review tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia and includes information on two important state-level economic indicators: the unemployment rate and home prices.
(Jan. 14, 2022) Changes in risk-based capital requirements for federally insured credit unions have triggered changes in call reports, effective for the first quarter of 2022, NCUA said this week.
In a release, the agency said it is revising its call report (Form 5300) starting with the March 2022 reporting cycle. The changes were spurred by the adoption last month of the new Complex Credit Union Leverage Ratio (CCULR) rule, which took effect Jan. 1.
The agency said the revised call report is part of its 2016 “Call Report Modernization Initiative,” which it added “examined how changes to the agency’s data collection practices could enhance the value of the data NCUA collects from credit unions for offsite monitoring and pre-examination planning as well as reduce the reporting burden for credit unions where appropriate.”
The CCULR is aimed at creating a framework which allows “complex” credit unions (those with more than $500 million in assets) opting in to maintain the CCULR instead of risk-based capital (which also took effect Jan. 1). Under CCULR, a complex credit union may qualify to opt in to the CCULR framework if it has a minimum net worth ratio of 9%. The minimum requirement for a classification of “well capitalized” under the CCULR framework – modeled on federal banking agencies’ community bank leverage ratio (CBLR) – is higher than the 7% minimum ratio required under prompt corrective action (PCA) but lower than the 10% required under risk-based capital.
The CCULR final rule also amends provisions of the 2015 risk-based capital final rule. NCUA has noted that, based on June 30, 2021, call report data, about 70% of complex credit unions (down from 90% pre-pandemic) qualify to use the CCULR framework and would be well capitalized under a 9% calibration.
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(Jan. 29, 2021) The new acting director of the CFPB said in a statement released Thursday that the bureau will be taking “aggressive action” in response to cases where financial providers have violated COVID-19-related consumer protections. Making public a statement he provided to staff last week, Acting Director Dave Uejio included COVID-19 relief for consumers as one of two priorities he has for the bureau; the other is racial equity … Just a reminder that Jan. 31 (Sunday) is the deadline for filing federally insured credit unions to file their fourth quarter 2020 call reports with NCUA. Also to be updated by that date: the Credit Union Profile, which includes (among other things) information that infrequently changes (including emergency contact information, information systems and technology, member programs and services, and more) … The Virginia State Corporation Commission, Bureau of Financial Institutions, is recruiting for multiple credit union examiner positions. More details available through the NASCUS State Job Announcements page (see link below) … Eligible credit unions interested in the Treasury Department’s Emergency Capital Investment Program can get more information during an upcoming webinar hosted by NCUA next Wednesday (Feb. 3) starting at 2 p.m. Eastern. The one-hour program will discuss the program’s eligibility and application requirements; the financial instrument and terms used for the investment, and whether credit unions can use the investment as secondary capital.
Call Report Filing Deadline for the December 31 Call Report Cycle
NASCUS State Job Announcements
NCUA webinar on Treasury Emergency Capital Investment Program