KBRA Releases Second-Quarter 2024 U.S. Credit Union Compendium: Interest Rate Sensitivity and Expected Earnings Stabilization

KBRA releases its second-quarter 2024 U.S. Credit Union Compendium, providing the latest view of the U.S. credit union (CU) sector and analysis of 2Q24 results for KBRA-rated CUs.

In this edition, we evaluate the industry's expected performance in late interest rate cycles, including earnings and credit performance. The review drills down into balance sheet construction and how the earning assets and liability structure of large CUs are positioned for the onset of monetary easing, which began on September 18 with a 50-basis point rate cut by the Federal Reserve. The report also assesses potential parallels to the historical credit performance in the last rate cutting cycle. The Compendium includes 2Q24 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 CUs 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.

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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.

Doc ID: 1006057

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