Net charge-offs as a percentage of average loans dropped by 2 basis points year over year at U.S. community banks, while the ratio held constant at U.S. credit unions in the third quarter.
U.S. credit unions reported $1.42 billion in net charge-offs for the third quarter, a 10.9% increase year over year. However, net charge-offs as a percentage of average loans saw no change year over year, holding at 0.55% in the third quarter. Meanwhile, net charge-offs at U.S. community banks decreased 8.7% year over year to $611.2 million, or 0.12% of average loans.
Twelve of the country's 20 largest credit unions by loans and leases reported an increased net charge-off ratio year over year. Navy FCU, the country's largest credit union, saw the ratio increase by 3 basis points year over year to 1.64% for the third quarter.
Overall credit quality continued to improve on a year-over-year basis. As of Sept. 30, U.S. credit unions had $7.73 billion in nonperforming assets, down 6.8% year over year and equal to 0.53% of total assets, down 7 basis points compared to the year-ago quarter. U.S. community banks posted a 5.2% decrease in nonperforming assets year over year, and the industry's nonperforming assets ratio dropped 11 basis points to approximately 0.88%.
Delinquent loans and leases at U.S. credit unions hit $15.01 billion at the end of the third quarter, equal to 1.45% of total loans and leases, compared to 1.56% in the year-ago quarter.
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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.