CUNA News
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • LOG IN
  • Create Account
  • Sign Out
  • My Account
  • Topics
    • Community Service
    • Compliance
    • Credit Union Hero
    • Credit Union Rock Star
    • Credit Union System
    • Directors
    • Human Resources
    • Leadership
    • Lending
    • Marketing
    • Operations
    • Policy & Issues
    • Sales & Service
    • Technology
  • Credit Union Magazine
    • Buyers' Guide
    • COVID-19
    • Digital Edition
    • Credit Union Hero
    • Credit Union Rock Star
    • Subscribe
    • Advertise
    • Contact
  • Advertise
  • Awards
    • Nominate Credit Union Hero
    • Nominate Credit Union Rock Star
  • Podcasts
  • Videos
  • Jobs
  • Contact

News

Home » Asset quality remains high
Lending

Asset quality remains high

Delinquencies should finish the year at 0.75%, then drift up to 0.85% by year-end 2019.

November 1, 2018
Mike Schenk
No Comments
Asset quality remains high

Strong labor markets, higher take-home pay, record levels of household net worth, and low debt holdings mean credit union asset quality should remain strong. Of course, continued healthy loan growth also will play a role.

Overall, credit union delinquencies have eased of late, with 60+-day delinquencies falling from 0.81% at the end of 2017 to 0.67% at midyear 2018. Five of the six portfolios CUNA tracks reflected declining delinquencies, both relative to year-end 2017 and to year-ago results.

The exception was agricultural business loans, which experienced an increase from 1.07% at year’s end 2017 to 1.67% at midyear 2018.

Net charge-offs are virtually unchanged and remain about 10 basis points higher than recent cyclical lows. Full-year credit union net losses in 2017 were 0.59% of average loans outstanding, and the annualized total came in at 0.60% during the first half of 2018.

Bankruptcies per 1,000 members also inched up from 1.52 in 2017 to 1.71 (annualized) for the first half of 2018.

CUNA economists expect delinquencies to finish the year at 0.75%, then drift up to 0.85% by year-end 2019.

Net charge-offs should move modestly in the same direction, averaging 0.60% in full-year 2018 and rising to 0.65% in 2019.

MIKE SCHENK is CUNA’s deputy chief advocacy officer for policy analysis and chief economist.

KEYWORDS delinquency

Post a comment to this article

Report Abusive Comment

Credit Union Magazine: Spring 2023

Spring 2023

Credit Union Magazine’s Spring 2023 issue features the 2023 Credit Union Heroes and examines CUNA-League advocacy priorities, board leadership, the impact of financial well-being efforts, fee-related compliance issues, predictions for the year ahead, and more.
Digital Edition •  Subscribe

Trending

  • CUNA Mascot Madness: Voting opens for East Region

  • CUNA launches page with bank collapse response resources

  • League leaders highlight credit union difference, safety, soundness

Tweets by CUNA_News

Polls

CUNA Mascot Madness: Which Midwest Region mascot is your favorite?

View Results
More

Champion for the Credit Union Movement

Credit Union National Association is the most influential financial services trade association and the only national association that advocates on behalf of all of America's credit unions. We work tirelessly to protect your best interests in Washington and all 50 states. We fuel your professional growth at every level and champion the credit union story at every turn.

More CUNA

  • Membership
  • Contact Us
  • Careers

Resources for

  • Credit Union Advocates
  • Leagues
  • Press
  • Providers

Our Affiliates

  • American Association of Credit Union Leagues (AACUL)
  • Credit Union Awareness
  • Credit Union House
  • CUNA Strategic Services
  • National Credit Union Foundation
GET CUNA UPDATES
© 2023 Credit Union National Association | ADA Compliance Notice & Legal
Email Us