Credit union assets and delinquencies grow in the fourth quarter
NCUA releases 2023 fourth quarter credit union system performance data
ALEXANDRIA, VA (March 12, 2024) — According to the latest financial performance data released today by the National Credit Union Administration, total assets in federally insured credit unions rose by $88 billion, or 4.1 percent, to $2.26 trillion over the year ending in the fourth quarter of 2023. Insured shares and deposits grew $37 billion, or 2.2 percent, to $1.72 trillion. The delinquency rate at federally insured credit unions was 83 basis points in the fourth quarter of 2023, up 21 basis points from one year earlier.
“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.”
Highlights from the NCUA’s Quarterly Data Summary Report(opens new window) for the fourth quarter of 2023 include:
- The credit union system’s net worth increased by $8.7 billion, or 3.8 percent, over the year to $24.5 billion.
- The return on average assets for federally insured credit unions was 69 basis points in 2023, down from 88 basis points in 2022. The median return on average assets across all federally insured credit unions was 60 basis points, up 10 basis points from a year earlier.
- Net income for federally insured credit unions in 2023 totaled $15.2 billion, down $3.5 billion, or 18.8 percent, from 2022. Interest income rose $26.6 billion, or 37.3 percent, over the year to $98.1 billion. Non-interest income rose $1.2 billion, or 4.9 percent, to $25.0 billion, largely reflecting an increase in other non-interest income.
- The delinquency rate on non-commercial real estate loans was 56 basis points in the fourth quarter of 2023, 13 basis points higher than in the fourth quarter of 2022. The credit card delinquency rate rose to 211 basis points from 148 basis points one year earlier. The auto loan delinquency rate increased 23 basis points over the year to 90 basis points in the fourth quarter of 2023.
- The net charge-off ratio was 61 basis points, up 27 basis points compared with the fourth quarter of 2022.
- Total loans outstanding increased $96.2 billion, or 6.4 percent, over the year, to $1.60 trillion. The average outstanding loan balance in the fourth quarter of 2023 was $17,922, up $778, or 4.5 percent, from one year earlier.
- Total shares and deposits rose by $31.2 billion, or 1.7 percent, over the year to $1.88 trillion in the fourth quarter of 2023.
The NCUA makes credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries and detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions that filed a call report as of December 31, 2023, including key metrics.
About National Credit Union Administration (NCUA)
The NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the United States, the NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 135 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. The NCUA also protects consumers and educates the public on consumer protection and financial literacy issues.
