All credit union star-ratings are now updated on our website, bauerfinancial.com, based on March 31, 2021 financial data. While the majority of federally-insured credit unions maneuvered their way nicely through the trials of the past year, there were some that were not quite prepared for the task.
As an industry, the things we want to see rise, rose: assets are up 19% from a year earlier; loans are up 4%; and shares/deposits are up 23%. And those items we want to see decline, did so as well: at 0.46%, the delinquent loan rate is down 17 basis points from a year ago and the net charge-off rate dropped from 58 basis points to 32 basis points over the 12 month period.
When you group by asset size however, it appears we have two different industries: federally-insured credit unions with assets of $500 million or greater, and those with assets less than that. As a rule, the larger C.U.s fared far better.
On pages 2 and 7, we have a list of all federally-insured credit unions that are either 1-Star or Zero-Stars, or rated 2-Stars but are considered less than “Adequately Capitalized” by regulatory standards. For the first time in years, that this list does not fit on one page. In fact, a year ago, only 33 credit unions met these criteria. Now there are 70. If you include all 2-Star credit unions, as we have on Bauer’s Troubled and Undercapitalized Credit Union Report, the number went from 90 a year ago to 147 now.