Second Quarter Report, 2022 Peer Data for New England Credit Unions
Attached is our summary of financial data for New England credit unions. Click PEER REPORT to view the June 30, 2022 data. In the data, each New England state has its own tab, and there is a final tab that includes all New England credit unions.
The data includes several key credit quality, performance, liquidity, and capital adequacy ratios. On the “all New England” tab, we have included comparable ratios for all credit unions in the U.S. and comparable prior period ratios for New England credit unions.
Some quick observations on the results are as follows:
ROA for all U.S. credit unions remains high with an ROA of 87 basis points in Q2 2022, which matches the return in Q1 2022. ROA for New England has been very consistent over the last five quarters and continues to lag the rest of the country with a ROA of 43 basis points in Q2 of 2022 up slightly compared to 32 basis points in Q1 of 2022 and up from 29 basis points in the same quarter one year ago.
Credit quality remains very strong, although delinquencies increased slightly from Q1 2022; the New England delinquent loans to total loans ratio increased 11 basis points to .79%. This ratio for the U.S. increased 10 basis points over the same period. While delinquencies increased slightly, charge-offs continue to be close to zero in New England at 10 basis points in Q2 of 2022 compared to 13 basis points last quarter. On a national level, net charge-offs continue to be much higher at 29 basis points but also stable compared to prior quarters.
Capital and Liquidity
Credit unions in New England and on a national level have seen a loan to share ratio in a tight range for the last five quarters after trending down in 2020 due to the COVID-19 related run-up in deposits.
The loans to shares ratio increased for New England Credit Unions from 56% in Q1 2022 to almost 58.6% in Q2 2022 and remain virtually unchanged on a national level. Capital ratios have also remained in a tight range for the last five quarters.
This information is publicly available, so it may be shared with others in your credit union, including board members. Please send us the email address of others that are interested in being added to our mailing list.
If you would like to discuss the information in further detail, we would be happy to do so.
A QUICK NOTE ON THE NEW ALLOWANCE FOR LOAN LOSSES REQUIREMENTS KNOWN AS CECL – Credit unions should have already started planning for adoption. Calendar year-end credit unions must adopt on January 1, 2023. Contact us if you want to discuss our thoughts on the topic, calculation methodologies, etc. We are happy to assist.
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