Asset quality at credit unions has improved over the past year as members’ financial situations improved with rising economy. The credit union industry reported 0.58% in net charge-off ratio as of second quarter 2013, posting an annual decrease of 18 basis points from 0.76% net charge-off ratio reported in the previous June. Every loan category experienced a decline in net charge-off as of June 2013, with credit card loans seeing the largest annual decrease of 40 basis points. Only 8 states experienced an increase in net charge-off ratio over the past twelve months.
Nevada held the title for the largest decline in net charge-off ratio. Nevada-based credit unions’ average net charge-off ratio declined 2.71% annually to 1.36% as of June 2013. Credit unions in Arizona came in next with their net-charge off ratio falling by 94 basis points over the past year to stand at 0.70% as of second quarter 2013.
CHANGES IN NET CHARGE-OFF RATIO
Data as of June 30, 2013 for All Credit Unions in the U.S.
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