Both credit unions and community banks reported mixed credit quality trends during the third quarter.
The net charge-off ratio at U.S. community banks rose 3 basis points year over year to 0.15%, while at credit unions, it remained unchanged at 0.55%.
As of Sept. 30, U.S. credit unions had $8.04 billion in nonperforming assets, up 3.9% year over year and equal to 0.52% of total assets, a one-basis-point improvement over the year. The increase was mainly driven by delinquencies in auto loans.
Meanwhile, U.S. community banks posted a 1.9% decrease in nonperforming assets, and the industry's nonperforming assets ratio dropped 8 basis points to approximately 0.81% of total assets.