If you did not know we are located in Florida, you probably do now. Thankfully, we are all okay. Irma was a finicky storm and devastated much of our state, but for the most part, our employees escaped the worst of her wrath.
In fact, we have been fortunate enough to be able to finalize credit union star-ratings off-site and we will have them uploaded to our website as quickly as possible. We thank you all for your patience.
Second quarter credit union data was released just as we were packing up to evacuate so it has taken a little longer to process than normal. But, as you can see on page 7, they are complete. After watching the percentage of credit unions rated 2-stars or below drop for several quarters in a row, we actually saw a slight uptick this quarter.
States with significant increases in Troubled and Problematic Credit Unions include: AL, DC, IN, KS, MO, NC, ND, NJ, NY, OH, RI, UT and VA. But with 6.9% of its CUs rated 2-Stars or below, Wyoming continues to have the highest percent.
On the flip side, 80.1% of the nation’s federally-insured credit unions are rated 5-Stars or 4-Stars. Highlights reflected in the NCUA release of the date include:
The industry continues to contract. Smaller credit unions, in particular, are finding it more difficult to maintain their independence. As a result, the number of credit unions with at least $500 million in assets is increasing, while the number with assets less than $50 million are decreasing creating a net deficit of 3.2% over a year ago.
Membership continues to grow. And with that, so grow loans and share deposits. While shares and assets grew almost in tandem, loan growth is outpacing them both.
At 0.75%, the overall delinquency rate on loans is the same as a year ago. Credit card delinquencies, however, are now above 1% (see chart A). This is an area of particular concern with both banks and credit unions.
Credit card chargeoffs, at 1.3% (2.5% annualized) are also on the rise affecting net chargeoffs on total loans. The net chargeoff rate on total loans is on the rise as as a result, but it remains well below recession levels (chart B).