NAFCU’s latest CU Industry Trends report showed the industry net worth ratio is up nearly 50 basis points from a year ago, and while delinquencies remain low, loan loss reserves surged in the first quarter as the current expected credit loss (CECL) standard took effect for most credit unions Jan. 1.
In addition, NAFCU’s member-only CU Performance Benchmark and Operating Expense reports were recently sent to credit unions and are now available for download. These reports provide credit unions with individualized financial performance and expense analyses based on the most recent call report data.
Industry earnings dropped during the first quarter, partly reflecting the rising provision for loan loss expenses. The industry also saw the highest rate of consolidation since 2016, losing 3.9 percent of federally-insured credit unions over the prior year.
Other key data from the first quarter trends report found that:
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