KBRA Releases Fourth-Quarter 2023 U.S. Credit Union Compendium and Expectations for 2024

23 Feb 2024   |   New York


KBRA releases its fourth-quarter 2023 U.S. Credit Union Compendium, providing the latest view of the U.S. credit union (CU) sector, analysis of 4Q23 results for KBRA-rated U.S. CUs, and expectations for 2024.

In this edition, we focus on how industry fundamentals have evolved in the higher interest rate environment, creating a more challenging operating environment for CUs. In KBRA's view, borrowers have faced pressures from the increase in interest rates and CUs greater than $5 billion in assets experienced modest revenue compression due to rising funding costs and lower nonsufficient fund fees, as well as investing in new technologies in order to enhance the customer experience. This KBRA report also examines other key topics relevant to the CU industry including the repositioning of earnings, asset quality risk, and the importance of capital strength. The Compendium includes 4Q23 summaries on U.S. CUs in KBRA’s rated universe, focusing on key performance and credit metrics. The report also includes the top 10 lowest cost deposit franchises, highest reserves to loans, and largest sequential changes in return on assets, net interest margin, net charge-offs, and nonperforming asset ratios among all credit unions greater than $5 billion in total assets. In addition, we include key financial highlights for the top 20 largest CUs by total asset size along with medians of key ratios.

Click here to view the report.

About KBRA

KBRA is a full-service credit rating agency registered in the U.S., the EU, and the UK, and is designated to provide structured finance ratings in Canada. KBRA’s ratings can be used by investors for regulatory capital purposes in multiple jurisdictions.

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