Data through June 30, 2024 . All figures reflect the universe of 4,631 federally insured credit unions reporting for the quarter. Income-based ratios (ROAA, NIM, NCO ratio) are annualized from 6-month YTD figures (×2). Growth rates are quarter-over-quarter.
Where the industry stands as of 6/30/2024:The credit union system contracted in Q2 2024 — total assets fell 0.29% quarter-over-quarter to $2.32 trillion, the weakest single-quarter asset growth in the dataset (rank 32/32). Shares and deposits declined 0.25%, the second consecutive quarterly drop after Q4 2023's contraction. But beneath the headline shrinkage, loan growth rebounded to 1.20% after the near-stall of Q1 (0.17%), and NIM extended its recovery to 3.02% annualized — the second consecutive quarterly increase from the 2.97% Q4 2023 trough. The net worth ratio jumped 26 basis points (bps) to 9.30%, driven by unrealized investment gains recovering as rates stabilized. Delinquency (60+ days) reached 0.84% — the highest reading in the dataset — with the over-$10B cohort at 1.23%.
230 bps above the 7.00% well-capitalized threshold; up 26 bps QoQ
A quarterly capital jump driven by unrealized gains:The system-wide net worth ratio surged to 9.30% as of 6/30/2024, up 26 bps from 9.04% in Q1 2024. The outsized quarterly move reflects the accounting treatment of unrealized investment gains: as intermediate-term Treasury and agency yields stabilized in Q2, the mark-to-market losses that had compressed regulatory net worth through 2022–2023 partially reversed. Total equity rose $5.1 billion to $215.7 billion despite the 0.29% asset contraction — a denominator effect that amplified the ratio improvement.
The capital build was broad-based across cohorts: credit unions under $100M hold 12.70%, while the over-$10B tier sits at 8.61% — the thinnest in the system and the only cohort below 9.00%. The 52 bps year-over-year improvement (from 8.78% in Q2 2023) is the largest annual capital gain since the post-pandemic equity recovery.
Highest reading in the dataset — up 7 bps QoQ and 21 bps YoY
Delinquency resumes its climb after the Q1 seasonal dip:The 60+ day delinquency ratio rose to 0.84% in Q2 2024, up 7 bps from the 0.77% seasonal trough in Q1 and 21 bps above the year-ago level of 0.63%. This is the highest reading in the dataset, extending a deterioration that has been uninterrupted — after adjusting for Q1 seasonal curing — since the 0.42% post-pandemic floor in Q1 2022. The Q1 dip to 0.77% was 25 bps above the prior year's Q1 (0.52%), confirming that each seasonal reset is landing on a higher floor.
The over-$10B cohort leads delinquency at 1.23%, sitting 39 bps above the system average — a gap that has been persistent and reflects the outsized indirect auto and consumer lending portfolios of the largest institutions. Net charge-offs eased fractionally to 0.79% annualized, down 1 bp QoQ but still up 27 bps year-over-year. The NCO ratio ranks 2nd of 32 quarters in the dataset — only Q1 2024's 0.80% (amplified by Q1 annualization ×4) was higher.
Second consecutive quarterly increase; up 2 bps QoQ
NIM recovery continues, but earnings lag the prior year:Annualized NIM reached 3.02% in Q2 2024, up 2 bps from Q1's 3.00% and extending a two-quarter recovery from the 2.97% Q4 2023 trough. The improvement is gradual — just 5 bps cumulative — but directionally consistent, as asset yields continue repricing higher while funding costs stabilize. ROAA ticked up to 0.68% annualized, up 2 bps from Q1, but remains 11 bps below the year-ago level of 0.79%.
Year-to-date net income of $7.9 billion through six months trails the $8.8 billion reported through Q2 2023 by 10.2%. The shortfall reflects the cumulative impact of higher funding costs (the Q2 2023 comparison still benefited from the tail end of the low-rate deposit base) and elevated credit costs. The over-$10B cohort leads on ROAA at 0.73%, while the $500M–$1B tier lags at 0.52%.
Rebound from Q1's 0.17% — ranks 28/32 in the dataset
Lending rebounds from the Q1 stall but remains below historical norms:System loans grew 1.20% quarter-over-quarter in Q2 2024, a recovery from Q1's 0.17% near-stall — the weakest quarterly loan growth outside the pandemic period. The Q2 rebound was led by the $1B–$10B tier at 1.32% and the over-$10B cohort at 1.31%. Credit unions under $100M posted 0.61% growth, positive but well below the system average.
The loans-to-assets ratio rose sharply to 70.38%, up 104 bps from Q1's 69.35%. This is not because loan growth was strong — it wasn't — but because asset growth was negative (-0.29%). When the denominator shrinks and the numerator grows, the ratio jumps. The 70.38% reading ranks 7th in the dataset, reflecting a balance sheet that remains loan-heavy heading into the second half of 2024.
Up 104 bps QoQ — driven by asset contraction, not loan surge
The balance sheet contracts as deposit outflows and borrowing reduction converge:Total assets fell 0.29% QoQ — the weakest quarterly asset growth in the dataset — as shares and deposits declined 0.25% and borrowings were reduced by $8.9 billion to $123.9 billion. The deposit decline reflects the Q2 seasonal reversal of Q1 tax-refund-driven inflows, compounded by ongoing competitive pressure on deposit pricing. Borrowings at $123.9 billion are down $8.9 billion from Q1 but still $3.5 billion above the year-ago level, indicating that the wholesale deleveraging that would characterize Q3–Q4 2024 had not yet begun in earnest.
The simultaneous contraction of assets and deposits while loans grew created a liquidity squeeze visible in the ratios: loans-to-assets at 70.38% (7th highest in dataset), loans-to-shares approaching 84%. The over-$10B tier runs the highest loan concentration at 72.15%, with the $1B–$10B cohort close behind at 71.84%. With borrowings still elevated and deposits declining, the system entered the second half of 2024 with limited liquidity flexibility — a pressure that would ease only when Q3–Q4 deposit inflows materialized and wholesale funding was aggressively paid down.
Key CAMELS-aligned metrics by asset-size cohort for the quarter ending June 30, 2024. Income-based ratios annualized from 6-month YTD figures (×2). Growth rates are single-quarter (QoQ).
Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q2 2024
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Standardized Data Table — CAMELS Metrics by Asset-Size Cohort, Q2 2024
This table is optimized for interactive viewing and is not included in the PDF. View the full data at finasense.com or in the accompanying spreadsheet.
Watch: Delinquency hits another dataset high — The 60+ day ratio reached 0.84%, the highest in the dataset. The Q1 seasonal dip (0.77%) was 25 bps above the prior year's Q1 trough, confirming a rising floor. The over-$10B cohort leads at 1.23%.
Watch: Asset contraction — worst in the dataset — Total assets fell 0.29% QoQ (rank 32/32) as deposits declined and borrowings were reduced. The balance sheet is contracting on the liability side while loans continue growing.
Favorable: Capital ratio jumps on investment recovery — The net worth ratio surged 26 bps to 9.30% as unrealized investment losses partially reversed. The 52 bps YoY improvement is the largest annual capital gain since the post-pandemic equity recovery.
Favorable: NIM recovery extends to two quarters — Net interest margin reached 3.02% annualized, up 5 bps cumulative from the 2.97% Q4 2023 trough. The improvement is gradual but directionally clear.
Pressure: Earnings trail prior year — YTD net income of $7.9 billion trails Q2 2023's $8.8 billion by 10.2%, driven by higher funding costs and elevated credit provisions.
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FINASENSE is not affiliated with the National Credit Union Administration (NCUA). Financial data is sourced from NCUA 5300 Call Report filings as submitted by individual credit unions and is not guaranteed as to accuracy or completeness. Ratio definitions and account classifications reference the NCUA Financial Performance Report (FPR) Chart of Accounts. All aggregation, analysis, and derived metrics are independently computed by FINASENSE and may differ from NCUA-published figures. Interpretations reflect the views of FINASENSE and not those of the NCUA.
This report does not consider the specific circumstances of any individual credit union and is not tailored advice. FINASENSE has no financial relationship with, and receives no compensation from, any institution referenced.
All information is provided "as is," without warranty of any kind, and FINASENSE disclaims liability for any decisions made in reliance on this report. Historical metrics are not indicative of future financial condition. This report is proprietary to FINASENSE, a publication of IP Foundries, LLC (Arizona), and may not be reproduced, distributed, or reused without prior written consent.
