Credit union net income fell in the third quarter as loan quality deteriorated sharply and consumer loan originations slumped.
NCUA data released Thursday showed the nation's 4,745 credit unions generated $3.8 billion in net income in the three months ending Sept. 30, or an annualized 0.67% of average assets. That's down from ROA of 0.91% a year earlier and 0.77% in the second quarter.
As in many quarters, the main culprit in the drop in ROA was a steep increase in the provisions credit unions took for anticipated loan losses. In many past quarters the anticipation was far higher than actual charge offs, but in the third quarter they were about the same.
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