NCUA: Number of Federally Insured CUs Drops, Membership Increases
Learn what was revealed in the NCUA's Quarterly Credit Union Data Summary for the first quarter of 2023.
Agency releases Quarterly Credit Union Data Summary for first quarter of 2023.
The number of federally insured credit unions dropped to 4,712 during the first quarter of 2023—compared with 4,903 in the first quarter of last year, the NCUA said Thursday.
The 191-credit union drop continued long-running industry consolidation trends, according to the agency.
But at the same time that the number of credit unions fell, federally insured credit unions added 5.7 million members—reaching 136.6 million in the first quarter of 2023.
Reaction From NCUA Chairman
“Within the credit union system, we have experienced continued growth in lending, along with increases in assets and insured shares,” NCUA Chairman Todd Harper said, in announcing the agency’s first quarter credit union performance data. “This is good news.”
He added, however, “Warning signs are also flashing on the horizon,” and cited the rise in home equity lines of credit, increases in credit card balances and higher delinquency rates reflected in the report.
Digging Deeper Into the Report
Additionally, the NCUA found that:
–The number of credit unions with a low-income designation declined to 2,596 in the first quarter of the year, down from 2,622 a year earlier.
–The number of credit unions with assets of more than $500 million rose to 712, up from 701 in the first quarter of 2022.
–Total loans outstanding in federally insured credit unions increased by $229 billion, or 17.6 percent, over the year ending in the first quarter of 2023, rising to $1.53 trillion.
–Total assets increased by $93 billion, or 4.4%, to $2.21 trillion.
–Insured shares and deposits rose over the past year by $39 billion, or 2.3 percent, to $1.73 trillion.
–Loans outstanding at federally insured credit unions increased by $228.6 billion—or 17.6%—to $1.53 trillion.
–The delinquency rate at federally insured credit unions was 53 basis points in the first quarter of 2023, up 10 basis points compared with the first quarter of 2022.
–The credit card delinquency rate increased to 148 basis points, up from 101 basis points a year ago.
–The auto loan delinquency rate increased by 19 basis points, up to 58 basis points overall, in the first quarter of this year.