Credit union loans experienced highest growth in first quarter of 2022

Credit union shares and deposits hit a combined $1.85 trillion at the end of the first quarter of 2022, according to the National Credit Union Administration (NCUA).

The NCUA’s latest quarterly data summary showed this figure included $686.1 billion in regular shares — a 9.6% increase since the end of March 2021 — and $777.7 billion in deposits, up by 5%.

Total loans outstanding increased by $136 billion to $1.3 trillion as of March 31, with most major loan categories experiencing an increase since the same time last year.

Todd Harper, chairman of the NCUA, said: “Overall, federally insured credit unions continued to perform well in the first quarter of 2022. Lending remained strong, and we continued to see low delinquency and charge-off rates.”

However, Harper added a note of caution: “Ongoing supply chain disruptions, rising interest rates, inflationary pressures, and geopolitical turmoil will likely combine to lower earnings, loan growth, and credit quality in the months ahead. Credit unions, therefore, must remain nimble to navigate through this challenging economic environment.”

Loan and lease loss provisions totalled $2.9 billion, approximately the same level as at the end of the first quarter of 2021.

The quarterly data also revealed that the credit union system’s net worth increased by 10.8% year on year, rising from $195.3 billion to $216.4 billion.

However, net income was down by $1.6 billion, or 8.2%, from the first quarter of 2021.

The NCUA’s findings echo those of the Federal Deposit Insurance Corporation (FDIC). The FDIC reported at the end of May that the US banking industry was strong enough to withstand a $17 billion or 22% decline in income over the first quarter, but warned that “significant uncertainty” remained.