NCUA Releases First Quarter CU System Performance Data | 2021-06-04
Federally insured credit unions reported net income growth of $ 11.3 billion, or 134.9%, in the year ending in the first quarter of 2021, according to the latest data on financial performance published by NCUA.
The increase in net income is largely due to strong growth in other operating income and lower provisions for charges on loans, rentals and credit losses. Stocks and insured deposits rose $ 286 billion, or 22.4%, to $ 1.56 trillion in the same period.
NCUA Highlights Quarterly data summary report for the first quarter of 2021 include:
- Net income of federally insured credit unions in the first quarter of 2021 totaled $ 19.7 billion on an annual basis, up $ 11.3 billion, or 134.9%, from the first quarter of 2020. Interest income declined $ 3.2 billion, or 5.3%, during the year to $ 57.7 billion. Non-interest income increased $ 5.9 billion, or 29.0%, to $ 26.2 billion, mainly due to growth in other operating income.
- The credit union system’s allowance for loan and rental losses or credit loss charges decreased $ 5.6 billion, or 66.1%, during the year to $ 2.9 billion year-on-year in the first quarter of 2021.
- Total outstanding loans increased $ 49 billion, or 4.4%, during the year to $ 1.17 trillion. The average outstanding loan balance in the first quarter of 2021 was $ 16,157, up $ 282, or 1.8%, from the previous year. Credit union loan balances increased in most major categories compared to the first quarter of 2020.
- The default rate for federally insured credit unions was 46 basis points in the first quarter of 2021, down 17 basis points from the first quarter of 2020. Loan performance improved or fell little changed in most major categories.
- Shares and deposits of credit unions increased $ 317.7 billion, or 23.1%, during the year to reach $ 1.69 trillion in the first quarter of 2021. Common stocks rose by $ 160.9 billion, or 34.6%, to $ 626.2 billion from the first quarter of 2020. Other deposits increased $ 56.5 billion, or 8.3 percent, to 740, $ 6 billion, mostly through money market accounts. These increased by $ 80.3 billion, or 28.5%, from the first quarter of 2020.
- The net worth of the credit union system increased $ 14.9 billion, or 8.3 percent, during the year to $ 195.3 billion. The overall net worth ratio – net worth as a percentage of assets – stood at 10.01% in the first quarter of 2021, up from 11.00% in the first quarter of 2020.
The NCUA provides extensive data on the performance of the credit union system in the Credit Union Analysis Section from NCUA.gov. The analysis section includes quarterly data summaries as well as detailed financial information, a graphics package illustrating financial trends of federally insured credit unions, and a list of worksheets all federally insured credit unions as of March 31, 2021, including key parameters.