ncua financial trends in federall< insured credit … · first mortgage real estate loan...
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2007 2009 2011 2013 2015 2017 2019
0%
20%
40%
60%
80%
100%
3%2%
10%
17%
68%
Asset Distribuon(% of Total Assets)
2007 2009 2011 2013 2015 2017 2019
0
2,000
4,000
6,000
8,000
1,940
3,255
5,195
Total
FCU
FISCU
Number of Insured Credit Unions Reporng
2008 2010 2012 2014 2016 2018 2020
0%
2%
4%
6%
8%
3.5%
8.8%
Asset Growth vs. Membership Growth
2008 2010 2012 2014 2016 2018 2020
-2%
0%
2%
4%
6%
8%
10%
7%
8%
Loan Growth vs. Share Growth
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS
Overall Trends2020 Q1
Net Loans to AssetsInvestments to AssetsCash & Equivalent to AssetsFixed, Foreclosed & Repossed AssetsOther Assets to Total Assets
Asset Growth (YoY)Membership Growth (YoY)
Loan Growh (YoY)Share Growth (YoY)
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0%
2%
4%
6%
8%
10%
12%11.0%
Aggregated Net Worth Rao
2020Q1
5,09398.0%
531.0%
390.8%
70.1%
30.1%
2008 2010 2012 2014 2016 2018 2020
0%
10%
20%
0%
100%
200%
7.5%
11.1%
Net Worth and Secondary Capital Growth (YoY)
For low-income designated credit unions, net worth includessecondary capital.
2012Q4
2013Q4
2014Q4
2015Q4
2016Q4
2017Q4
2018Q4
2019Q4
Count<0%0% to2%2% to4%4% to6%6% to7%
>7%5,15898.5%
390.7%
320.6%
40.1%
20.0%
10.0%
5,28998.4%
541.0%
260.5%
30.1%
20.0%
10.0%
5,43997.6%
901.6%
350.6%
40.1%
20.0%
30.1%
5,64297.5%
1031.8%
260.4%
130.2%
10.0%
5,87297.5%
1091.8%
290.5%
50.1%
50.1%
10.0%
6,11997.5%
1011.6%
380.6%
100.2%
20.0%
30.0%
6,36697.1%
1261.9%
490.7%
80.1%
30.0%
20.0%
6,57096.3%
1672.4%
610.9%
140.2%
60.1%
10.0%
Distribuon of Net Worth Rao
2020 Q1NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS
Net Worth
Net Worth Growth (YoY)Secondary Capital Growth (YoY, Right)
Earnings
2007 2009 2011 2013 2015 2017 2019
-1.5%
-1.0%
-0.5%
0.0%
0.5%
1.0%
0.5%
0.5%
Return on Average Assets vs. Provision for Loan & Lease Losses
NetInterestIncome
Fee &OtherIncome
OperatingExpenses
Provisionfor Loan &Lease Los..
NonOperatingIncome
Return onAverageAssets
2008 Q42009 Q42010 Q42011 Q42012 Q42013 Q42014 Q42015 Q42016 Q42017 Q42018 Q42019 Q4 0.9%
0.9%0.8%0.8%0.7%0.8%0.8%0.9%0.7%0.5%0.2%-0.1%
0.1%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.0%0.3%-0.1%
0.4%0.5%0.5%0.4%0.3%0.3%0.3%0.4%0.5%0.8%1.1%0.9%
3.2%3.2%3.1%3.1%3.1%3.1%3.2%3.2%3.3%3.3%3.6%3.6%
1.4%1.4%1.3%1.4%1.3%1.3%1.4%1.4%1.3%1.3%1.4%1.3%
3.2%3.1%3.0%2.9%2.9%2.8%2.8%2.9%3.1%3.3%3.2%3.2%
Rao of Average Assets
2007 2009 2011 2013 2015 2017 2019
0.0%
1.0%
2.0%
3.0%
4.0%
3.0%
Operang Expense vs. Net Interest Margin
2007 2009 2011 2013 2015 2017 2019
0.0%
2.0%
4.0%
6.0%
1.8%
0.9%
4.9%
Yield vs. Cost of Funds
2020 Q1 0.5%0.0%0.5%3.2%1.3%3.0%
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
Operating ExpensesNet Interest Income
Provision for Loan & Lease LossesReturn on Average Assets
Annualized Yield on Loans to Ave. LoansAnnualized Yield on Investment to Avg. InvestmentAnnualized Cost Of Funds to Avg. Asset
2007 2009 2011 2013 2015 2017 2019
0%
20%
40%
60%
80%
100..
51%
5%
34%10%
Definition Change
Loan Distribuon(% of Total Loans)
2007 2009 2011 2013 2015 2017 2019
0%
20%
40%
60%
80%
100..
58%
29%
13%
First Mortgage Real Estate Loan Distribuon(% of First Mortgage Real Estate Loans)
2010 2015 2020
0%
20%
40%
60%
80%
100%
5%
13%6%
21%
43%
8%4%
Loan Distribuon(% of Total Loans)
2010 2015 2020
$0B
$200B
$400B
$600B
$800B
$1,000B
$55B
$145B$64B
$229B
$478B
$91B$46B
Loan Distribuon(Billions) 2014
Q42015Q42016Q42017Q42018Q42019Q4
CreditCard
OtherUnsecured
NewVehicle
UsedVehicle
FirstMortgage
Other RealEstate
Leases &All Other 8%
4%
9%
4%
0%
8%
7%
11%
8%
9%
9%
11%
7%
8%
-8%
6%
11%
10%
13%
8%
9%
11%
4%
10%
12%
17%
7%
8%
12%
3%
10%
13%
16%
9%
6%
12%
2%
9%
13%
21%
10%
8%
Loan Growth
2020Q1
1%
0%
2%
1%
-2%
-1%
-2%
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
Loan Distribuon
Other UnsecuredOther Real EstateFirst Mortgage REUsed VehicleCredit CardNew VehicleLeases & All Other
Other to LoansReal Estate to LoansUnsecured to LoansVehicle to Loans
Adjustable to First MortgageBalloon/Hybrid to First MortgageFixed to First Mortgage
2007 2009 2011 2013 2015 2017 2019
0.0%
0.5%
1.0%
1.5%
0.6%0.6%
Delinquency & Annualized Net Charge-Offs
2007 2009 2011 2013 2015 2017 2019
0%
20%
40%
60%
80%
100%
$0B
$2B
$4B
$6B
$8B
$10B
73.0%
17.2%
9.9%
$7B
Delinquency(% of Total Delinquent Loans)
Chargeoff %Δ Recovery %ΔNet Chargeoff
%Δ2013 Q12014 Q12015 Q12016 Q12017 Q12018 Q12019 Q12020 Q1 6.03%
7.86%18.98%25.08%6.77%-6.00%-18.03%-18.04%
8.53%7.45%12.32%13.41%9.68%1.30%-0.73%-3.70%
6.71%7.75%17.10%21.55%7.64%-3.95%-13.81%-14.95%
Charge-Offs and Recoveries AmountRolling 4 quarters
Chargeoffs RecoveriesNet
Charge-Offs2013 Q12014 Q12015 Q12016 Q12017 Q12018 Q12019 Q12020 Q1 $13,397M
$12,635M$11,715M$9,846M$7,872M$7,373M$7,843M$9,569M
$5,068M$4,670M$4,346M$3,869M$3,412M$3,111M$3,071M$3,093M
$18,465M$17,305M$16,060M$13,715M$11,284M$10,483M$10,914M$12,662M
Charge-Offs and Recoveries AmountRolling 4 quarters
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS
Delinquency & Chargeoff Trends
2020 Q1
Delinquency RateNet Charge Off
Delinquency Rate360+ days180-359 days60-179 daysDelinquency Amount
2007 2009 2011 2013 2015 2017 2019
0.0%
0.5%
1.0%
1.5%
$0B
$50B
$100B
$150B
$200B
0.6%
$229B
Indirect Loans & Delinquency
2010 2012 2014 2016 2018 2020
0%
2%
4%
$0B
$10B
$20B
$30B
0.8%
$34B
Parcipaon Loans & Delinquency
2007 2009 2011 2013 2015 2017 2019
0.00%
0.50%
1.00%
1.50%
2.00%
2.50%
3.00%
3.50%
0.8%
0.5%0.5%0.5%
0.3%
Real Estate Delinquency
2007 2009 2011 2013 2015 2017 2019
0%
1%
2%
3%
4%
0.01%
3.36%
0.45%
0.69%
0.01%
Loan Chargeoff Rate
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
Delinquency & Chargeoff Trends (connued)First Mortgage FixedFirst Mortgage AdjustableOther AdjustableOther FixedTotal Real Estate
Indirect Loans (Right)Indirect Loan Delinquency
Participation Loan Balnace (Right)Participation Loan Delinquency
First Mortgage Chargeoff RateUsed Vehicle Chargeoff RateNew Vehicle Chargeoff RateCredit Card Chargeoff RateOther RE Chargeoff Rate
2010 2015
0%
20%
40%
60%
80%
100%
0%
40%
11%
48%
ASC 320 Investment ClassificaonUntil 4Q2018
As of 1Q2019, security portfolio was split into debtand equity securities. 2010 2015 2020
0%
20%
40%
60%
80%
100%
15%2%3%
72%
4%4%
Total Non-ASC 320 Investment Distribuon
2010 2015 2020
0%
20%
40%
60%
80%
100%
2%8%
13%
23%
54%
Maturity(% of Total Investments)
<1 year1 - 3years
3 - 5years
5 - 10years
> 10years
2009 Q42010 Q42011 Q42012 Q42013 Q42014 Q42015 Q42016 Q42017 Q42018 Q42019 Q4 44%
-3%3%-12%-21%-22%11%8%15%19%31%
-2%0%3%11%0%-30%60%28%-4%55%41%
-8%-12%5%-10%-6%-5%23%19%16%41%32%
7%0%-9%-7%2%12%-17%1%13%19%38%
23%-4%-1%7%6%-4%-13%8%14%-1%27%
Investment Growth by Maturity
2010 2015 2020
$0B
$100B
$200B
$300B
$400B
$32B$8B
$55B
$99B
$229B
Maturity
2020 Q1 51%3%1%7%21%
Equity Securities$4.0B
Trading Debt Securities$0.3B
HTM Debt Securities$32.9B
Other Investments$48.3B
AFS Debt Securities$192.6B
ASC 320 Investment Classificaon
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
Investment Trends - Accounng Standards Codificaon
AFSTradingHTMNon ASC
Natural Person CUsAll OtherCash EquivalentsCorporate CUsBank, Thrifts, & Savings BanksCash on Deposit
<1 year1 to 3 years3 to 5 years5 to 10 years>10 years
2010 2015 2020
0%
20%
40%
60%
80%
100%
6%1%1%
21%
20%
34%
16%
Share Distribuon(% of Total Shares & Deposits)
ShareDraft
RegularShares
MoneyMarket
ShareCerts.
IRA/KEOGH Accounts
AllOtherShares
Non Member Deposits
2008 Q42009 Q42010 Q42011 Q42012 Q42013 Q42014 Q42015 Q42016 Q42017 Q42018 Q42019 Q4 8%
16%17%31%32%69%31%3%-9%-3%-5%5%
8%8%1%14%4%-1%-6%0%9%4%14%18%
4%0%-1%2%0%-2%-1%2%2%4%13%14%
21%12%6%5%1%-1%-3%-3%-4%-5%0%5%
5%1%4%8%6%3%4%8%8%11%23%16%
4%1%7%12%10%8%8%12%11%10%12%6%
8%14%9%3%14%10%7%11%12%5%16%4%
Share Growth
2010 2015 2020
$0B
$200B
$400B
$600B
$800B
$1,000B
$1,200B
$1,400B
$13B$13B$82B
$295B
$281B
$465B
$227B
Share Distribuon
2007 2009 2011 2013 2015 2017 2019
0%
20%
40%
60%
80%
100%
3%8%
88%
Savings Maturies
2020 Q1 4%11%1%3%2%5%9%
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
Share Trends
Share DraftsRegular SharesMoney Market SharesShare CertificatesIRA/KEOGH AccountsAll Other SharesNon-Member Deposits
Savings Maturities < 1 YearSavings Maturities 1 to 3 yearsSavings Maturities >3 years
2010 2015 2020
0%
10%
20%
30%
$0B
$100B
$200B
$300B
$400B
$500B33%33%
Net Long Term Assets / Total Assets
2010 2015 2020
0%
20%
40%
60%
80%
$0B
$200B
$400B
$600B
$800B
$1,000B75%81%
Total Loans / Total Shares
2010 2015 2020
0%
5%
10%
15%
$0B
$50B
$100B
$150B
$200B
$250B
15%15%
Cash + Short Term Investments / Assets
2010 2015 2020
0%
1%
2%
3%
4%
5%
$0B
$10B
$20B
$30B
$40B
$50B
$60B
3.4%
4.1%
Borrowings / Total Shares & Net Worth
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
Asset-Liability Management Trends
Net Long Term Asset / Total Assets10 Year AverageNet Long Term Asset Amount (Right)
Loan to Share10 Year AverageTotal Loans
Cash + ST Investment to Asset10 Year AverageCash + Short Term Investments (Right)
Borrowings to Shares & NW10 Year AverageBorrowings (Right)
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
0%
20%
40%
60%
80%
100%
3,24763%
96118%
Number & Proporon of Credit Unions, by CAMEL Rangs
<$50M $50M to $100M $100M to $250M $250M to $500M $500M to $1B $1B to $10B >$10B
2008 Q1
2010 Q1
2012 Q1
2014 Q1
2016 Q1
2018 Q1
2008 Q1
2010 Q1
2012 Q1
2014 Q1
2016 Q1
2018 Q1
2008 Q1
2010 Q1
2012 Q1
2014 Q1
2016 Q1
2018 Q1
2008 Q1
2010 Q1
2012 Q1
2014 Q1
2016 Q1
2018 Q1
2008 Q1
2010 Q1
2012 Q1
2014 Q1
2016 Q1
2018 Q1
2008 Q1
2010 Q1
2012 Q1
2014 Q1
2016 Q1
2018 Q1
2008 Q1
2010 Q1
2012 Q1
2014 Q1
2016 Q1
2018 Q1
0%
20%
40%
60%
80%
100% 0%
12%
62%
22%5% 2%
18%
67%
13%
2%21%
68%
8%1%
26%
66%
7%
4%
1%
29%
66%
0%
55%
44%
1%
36%
64%
Number & Proporon of Credit Unions, by Asset Size & CAMEL Rangs
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
CAMEL 5 4 3 2 1
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q3
2018 Q1
2018 Q3
2019 Q1
2019 Q3
0
20
40
60
80
100
Count of Credit Unions
21121612
412112124221192473
13
112221521 318264051474642
6452
403862
4164536864
43646872
6255
605672
586867
687382
514557
4643475974
4747767775
56556572
63595
1
3127
67
326
14
533
2473
105
55
24
913210
58
48
14
32
1244
1175
26
Total Number of Mergers, Liquidaons and Purchase & Assumpons by Quarter (Includes Failures)
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q4
2018 Q2
2018 Q4
2019 Q3
0
5
10
# of failed CUs 10
11
4
624 4
31
57
54
78
7
623
75
646
4
6243
75
612
621321 1
Number of Failed Credit Unions by Quarter
Failure and Merger Trends
ClosureTypeLiquidationMergerPurchase & Assumption
<$50M$50M to$100M
$100M to$250M
$250M to$500M
$500M to$1B
$1B to$10B
>$10B
Number of FICU Reporting
Total Assets
Average Assets / CU
Net Worth / Total Assets
Average Net Worth Ratio
Return on Average Assets
Net Interest Income
Fee & Other Income
Operating Expenses
Provision for Loan & Lease Losses
Loan to Share
Delinquency Rate
Real Estate Delinquency Rate
Commercial/MBL Delinquency Rate
Net Charge-Offs to Ave. Loans
Net Long Term Asset / Total Assets
Cash + ST Investment to Asset
Borrowings to Shares & NW 9.69%
14.18%
33.10%
1.14%
0.85%
0.69%
0.94%
83.74%
1.15%
2.76%
1.22%
3.23%
0.48%
10.32%
10.51%
$28,212M
$310.3B
11
3.78%
13.77%
34.83%
0.45%
0.59%
0.30%
0.50%
84.29%
0.42%
2.98%
1.28%
2.74%
0.61%
10.98%
10.93%
$2,505M
$829.1B
331
2.80%
14.22%
34.21%
0.48%
1.06%
0.41%
0.61%
80.80%
0.39%
3.61%
1.36%
3.05%
0.42%
11.02%
11.02%
$695M
$175.7B
253
1.54%
16.27%
30.33%
0.47%
1.02%
0.45%
0.64%
77.23%
0.35%
3.76%
1.41%
3.13%
0.44%
11.13%
11.13%
$352M
$120.5B
342
0.80%
18.64%
27.79%
0.45%
1.25%
0.51%
0.71%
72.17%
0.31%
3.77%
1.30%
3.19%
0.43%
11.54%
11.46%
$158M
$107.8B
681
0.38%
22.94%
22.99%
0.44%
0.67%
0.52%
0.76%
64.59%
0.25%
3.74%
1.18%
3.22%
0.43%
12.14%
12.08%
$72M
$48.5B
672
0.11%
27.48%
16.04%
0.45%
0.96%
0.74%
1.07%
59.95%
0.25%
3.68%
0.91%
3.34%
0.35%
15.17%
13.36%
$16M
$46.5B
2,905
Summary of Trends by Asset Group
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1
FICU FISCU TotalNumber of FICU Reporting
Total Assets
Total Loans
Share
Delinquency Amount
% of FICU
% of Total FICU Assets
% of Total FICU Loans
% of Total FICU Delinquency
Net Worth / Total Assets
Delinquency Rate
Net Charge-Offs to Ave. Loans
Gross Income to Ave. Asset
Cost of Funds to Ave. Assets
Provision for Loan & Lease Losses
Operating Expenses
Return on Average Assets
Net Long Term Asset / Total Assets
Loan to Share
Share Growth (YoY)
Loan Growh (YoY)
Asset Growth (YoY) 8.79%
6.51%
8.11%
81.14%
32.75%
0.53%
3.16%
0.53%
0.21%
1.27%
0.58%
0.63%
11.01%
100.00%
100.00%
100.00%
100.00%
$7,082M
$1,376,081M
$1,116,520M
$1,638,433M
5,195
7.14%
3.59%
7.70%
81.46%
32.33%
0.55%
3.13%
0.44%
0.20%
1.23%
0.44%
0.54%
10.94%
42.25%
49.48%
48.61%
37.34%
$2,992M
$678,255M
$552,499M
$796,433M
1,940
5.88%
1.90%
5.33%
80.83%
33.16%
0.51%
3.19%
0.62%
0.23%
1.31%
0.71%
0.73%
11.07%
57.75%
50.52%
51.39%
62.66%
$4,090M
$697,827M
$564,020M
$841,999M
3,255
Summary of Trends by CU Type
NCUA FINANCIAL TRENDS IN FEDERALLY INSURED CREDIT UNIONS 2020 Q1