NCUA Releases 2021 Fourth Quarter Credit Union System Performance Data

Source: NCUA

According to the latest financial performance data released today by the National Credit Union Administration, total assets in federally insured credit unions rose by $215.8 billion, or 11.7 percent, to $2.06 trillion over the year ending in the fourth quarter of 2021, and insured shares and deposits grew $166.8 billion, or 11.4 percent, to $1.63 trillion.

“Overall, the credit union system performed well in 2021, despite the year’s many challenges,” said Chairman Todd M. Harper. “This is a testament to the strength of the credit union system going into the pandemic and the skillful management of credit union CEOs, boards of directors, and staff over the last two years.”

“However, I would caution that we may not yet have seen the COVID-19 pandemic’s full economic effects on credit union portfolios and performance,” Harper added. “The potential for new COVID variants, continuing labor market and supply chain challenges, inflationary pressures, the prospect of rising interest rates, and current geopolitical tensions could negatively affect household finances and ultimately credit union performance going forward. Credit unions and the NCUA, therefore, must remain watchful and ready to respond to these issues.”

Highlights from the NCUA’s Quarterly Data Summary Report for the fourth quarter of 2021 include:

• The credit union system’s net worth increased by $21.2 billion, or 11.1 percent, over the year to $211.6 billion. The aggregate net worth ratio — net worth as a percentage of assets — stood at 10.26 percent in the fourth quarter of 2021, down from 10.32 percent one year earlier.
• Insured shares and deposits rose $166.8 billion, or 11.4 percent, over the year ending in the fourth quarter of 2021, to $1.63 trillion.
• The return on average assets for federally insured credit unions was 107 basis points in the fourth quarter of 2021, up from 70 basis points in the fourth quarter of 2020. The median return on average assets across all federally insured credit unions was 50 basis points, up 10 basis points from the fourth quarter of 2020.
• Total loans outstanding increased $92.7 billion, or 8.0 percent, over the year to $1.26 trillion. The average outstanding loan balance in the fourth quarter of 2021 was $16,109, down $70, or 0.4 percent, from one year earlier.
• The delinquency rate at federally insured credit unions was 49 basis points in the fourth quarter of 2021, down 11 basis points from one year earlier. The net charge-off ratio was 26 basis points, down from 45 basis points in the fourth quarter of 2020.
• The number of federally insured credit unions declined to 4,942 in the fourth quarter of 2021, from 5,099 in the fourth quarter of 2020. In the fourth quarter of 2021, there were 3,100 federal credit unions and 1,842 federally insured, state-chartered credit unions. The year-over-year decline is consistent with long-running industry consolidation trends.
• Federally insured credit unions added 5.3 million members over the year, and credit union membership in these institutions reached 129.6 million in the fourth quarter of 2021.

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 as well as detailed financial information, a graphics package illustrating financial trends in federally insured credit unions, and a spreadsheet listing all federally insured credit unions that filed a call report as of December 31, 2021, including key metrics.