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Credit union, community bank net charge-offs diverge in Q4'17

Net charge-offs at U.S. community banks fell 4.4% year over year to $1.05 billion, or 0.21% of average loans, while net charge-offs at U.S. credit unions increased by 27.0% to $1.67 billion, and the ratio of net charge-offs to average loans climbed 9 basis points to 0.70%.

Net charge-offs also increased at a majority of the largest credit unions year over year. Thirteen of the country's 20 largest credit unions by loans and leases reported an increase in the ratio of net charge-offs to average loans compared to the final quarter of 2016.

Nonperforming assets at U.S. credit unions hit $8.71 billion at the end of the year, up 6.2% year over year and equal to 0.62% of total assets, compared to 0.63% in the year-ago quarter. U.S. community banks experienced an 11.3% decrease in nonperforming assets to $27.5 billion, which represented 0.93% of total assets, a decrease of 20 basis points year over year.

Delinquent loans and leases at U.S. credit unions hit $18.06 billion at the end of the fourth quarter, representing roughly 1.87% of total loans and leases, compared to 1.88% in the year-ago quarter. Delinquent used-vehicle loans increased by $388.4 million over the year to $4.86 billion. First-mortgage delinquencies were up by 51.0% quarter over quarter and 8.9% year over year to $5.84 billion.

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Information on past-due loans for banks, thrifts and credit unions can be found under the "Regulatory Financials" section on a company's page on MI website or in MI office.