Lending, assets, insured shares, delinquencies rise in Q3

Total loans outstanding in federally insured credit unions increased $132 billion, or 9.1%, over the year ending in the third quarter of 2023, to $1.59 trillion, according to the latest financial performance data released by NCUA.

Total assets rose by $79 billion, or 3.7%, to $2.23 trillion during the same period. Insured shares and deposits increased $23 billion, or 1.4%, to $1.72 trillion, from one year earlier. Also, for the third quarter of 2023, the delinquency rate was 72 basis points, up 19 basis points from one year earlier.

The NCUA’s Quarterly Credit Union Data Summary provides an overview of the financial performance of federally insured credit unions based on information reported to the agency in the third quarter of 2023. 

As of Sept. 30, 2023, there were 4,645 federally insured credit unions with 138.8 million members.

Highlights from the NCUA’s Quarterly Data Summary Report for the third quarter of 2023 include:

• Net income for federally insured credit unions in the first three quarters of 2023 totaled $16.6 billion at an annual rate, down $1.9 billion, or 10.3%, from the first three quarters of 2022. Interest income rose $27.9 billion, or 41.4%, over the year to $95.3 billion annualized.
• The credit union system’s provision for loan and lease losses or credit loss expense increased $5.5 billion, or 125.5%, to $9.9 billion at an annual rate in the first three quarters of 2023.
• Total loans outstanding increased $132.0 billion, or 9.1%, over the year to $1.59 trillion. Credit union loan balances rose in most major categories, compared with the third quarter of 2022. The rate of growth, however, has slowed compared to recent quarters.
• Total shares and deposits rose by $16.1 billion, or 0.9%, over the year to $1.88 trillion in the third quarter of 2023. Regular shares declined by $91.1 billion, or 13.4%, to $588.0 billion. Other deposits increased by $118.7 billion, or 15.0%, to $910.5 billion, led by share certificate accounts, which grew $185.9 billion, or 72.0%, over the year to $444.2 billion.
• The credit union system’s net worth increased by $11.4 billion, or 5.0%, over the year to $239.2 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.73% in the third quarter of 2023, up from 10.60 percent one year earlier.

The NCUA makes credit union system performance data available in the Credit Union Analysis section of NCUA.gov. The analysis section includes quarterly data summaries and detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions as of September 30, 2023, including key metrics.