NCUA’s released 2023 Q4 system performance data continues trend of declining credit union numbers

Last week, the National Credit Union Administration released the credit union system performance data for the fourth quarter of 2023. NCUA reported that the number of federally insured credit unions (FICU) declined to 4,604—156 fewer than there were as of the fourth quarter of 2022.

Many of those may have come from low-income designation credit unions, whose numbers dropped by 129 from 2,612 in 2022 to 2,483 in 2023. Meanwhile, the number of “complex” FICUs—those with total assets over $500 million—increased by 5 to 714.

Total assets of federally insured credit unions, NCUA reported, increased by a modest $88 billion, 4.1%. For comparison, assets grew by 5.2% in 2022, 11.7% in 2021, 17.7% in 2020, 7.8% in 2019, and 5.4% in 2018.

“The credit union system remains largely stable in its performance and remains resilient against a challenging interest rate and economic environment,” Chairman Todd M. Harper said. “However, the NCUA continues to see signs of financial strain on credit union balance sheets, along with growing consumer financial stress as reflected in the rising delinquency rate shown in the latest data. Credit union executives, administrators, and boards of directors must remain diligent in managing the safety-and-soundness and consumer financial protection risks within their institutions. Today’s marketplace requires active — not passive — management by all.”

 

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