Credit quality at U.S. community banks and credit unions improved year over year in the second quarter.
As of June 30, U.S. credit unions had $7.51 billion in nonperforming assets, down 0.9% on an annualized basis. Nonperforming assets as a percent of total assets fell to 0.49% at the end of June, a 4-basis-point improvement over the second quarter of 2018.
U.S. community banks posted a 4.4% decrease in nonperforming assets over the year-ago quarter, and the industry's nonperforming asset ratio dropped 10 basis points to 0.81% of total assets.
The net charge-off ratio at U.S. credit unions fell 6 basis points year over year to 0.55%, while at community banks, the ratio dropped 4 basis points to 0.11%. Due to a higher proportion of consumer loans, net charge-offs tend to run higher at credit unions.

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