person carrying a bag of money up stairs as money falls out of a hole in the bag Source: Shutterstock.

Loan production fell sharply in the third quarter for the nation’s largest credit unions. And while core operating income continued this year’s pattern of improvement, loan quality continued to slip from the unusually high quality of the pandemic era.

The Top 10 credit unions by assets generated $919.8 million in net income in the three months ending Sept. 30, or an annualized 0.95% of average assets, down from ROA of 1.38% in 2021’s third quarter and 0.96% in this year’s second quarter. Much of the change in ROA came from a sharp increase in loan loss provisions, which are prone to large fluctuations.

Chart showing loan production falling for the top 10 credit unions.

Credit union consultant Mike Higgins instead measures net operating income, in which net charge-offs replace loan loss provisions.

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Jim DuPlessis

A journalist for decades.

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