Fifty percent of member business loan delinquencies are concentrated in 18 of the 698 credit unions that hold 95% of all MBL dollars, according to analysis from CU Business Group.
NCUA 5300 June 30 report statistics showed that 84% of MBL delinquencies and 91% of MBL charge-offs reside in the portfolios of just 100 credit unions, CUBG found.
"It's good news that the industry's problems are held by a small number of credit unions and most credit unions have low delinquencies," said CUBG President/CEO Larry Middleman. "In fact, 234 of these 698 credit unions have zero delinquencies, which is highly commendable in today's economy."
A similar trend rings true for MBL charge-offs, with only 23 credit unions having greater than $1 million in MBL charge-offs as of June 30, according to CUBG.
The business lending CUSO also found that $83 million or 91% of all charge-offs are concentrated in the portfolios of just 100 credit unions.
"While we know that delinquencies and charge-offs are on the rise in this troubled economy, what many don't realize is the majority of the problem is very concentrated. These statistics make it clear that 100 credit unions hold the majority of problem MBLs in the industry," Middleman said. "The reality is that the majority of credit unions doing significant business lending are in excellent shape."