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Each quarter, CU Data releases a statistics and trends report. The report gives our team insights into what the industry is experiencing and how that will impact our clients and their members. In this blog post, I’d like to share some highlights and notable KPIs from the Q3 2021 report.
This year has been a better recovery year than originally anticipated, although there are plenty of concerns looking forward to 2022, especially with the prospects of higher inflation and continued disruptions caused by supply chain issues. Here is a brief summary of CU Data’s report:
- Credit unions continue to see an inflow of new deposits from members, albeit at a slower pace than last year.
- YTD net loan growth has slowed as members pay down debt and supply chain issues continue to hamper new car sales.
- Net Income surged in Q3, pushing ROAs higher as delinquencies remain low and fewer dollars are diverted to Loan Loss Reserves.
- YTD loan originations continue to grow but at a slower pace than last year.
- Auto loan growth picked up in Q3, mainly in the used car segment of the market.
- Meanwhile, new car financing lagged. According to Edmunds, new car and truck sales in Q3 reflected a 13% decrease from Q3 of 2020 and a 7% decrease compared to Q2 2021.
- With an abundance of stimulus money matriculating in the economy, delinquencies remain low. However, with the federal government recently reporting that consumer prices jumped 6.8% over the past year—the highest inflation rate in 39 years—credit unions are beginning to feel uneasy about the prospects for 2022.
This year has been a nice recovery year for the credit union industry with solid asset growth, consumer loan demand picking up, delinquencies remaining low, and strong earnings being reported across the board.
Although, 2022 will present some unique challenges, including rising inflation, continued supply chain shortages, and a shrinking workforce of experienced workers, not to mention the distraction of the mid-term elections. Next year will be an interesting and challenging year for the financial services industry.
As the Boy Scout’s motto says, “Be prepared.”
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