When looking at delinquencies, credit unions still have some of the lowest rates even among the worst performing business lending portfolios.
CU Business Group LLC discovered that after reviewing NCUA data as of Dec. 31, 2010. At the end of last year, there were 2,136 CUs with MBLs on their books. The overall average percentage of delinquencies for all CUs was 5.55%.
Taking it another step, the Portland, Ore.-based CUSO found that the 659 of those CUs with $5 million or more in MBLs on their books had an average delinquency rate of 4.23%.
CUBG also discovered that 222 of these CUs had 0.0% delinquencies and 61 of them had between 0.01% and 0.49% in delinquencies.
According to CUBG President/CEO Larry Middleman, “if we remove the 10 worst performing CUs, the average delinquency rate changes to 3.64%. If we remove the 50 worst performing CUs, the average becomes 2.65%.”
“Credit unions look pristine when you look at the whole picture,” Middleman recently told at attendees at CUBG’s National Business Services Conference in Portland. “It’s unfortunate that there were a few bad ones out there that have tainted the industry.”
Since 2008, MBL activity has continued to grow. Middleman said 578 CUs had more than $5 million in MBLs on their books. That figure grew to 659 in 2010. In 2008, 124 CUs had more than $50 million MBLs compared to 149 last year.