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Net charge-offs continue to sting credit unions in Q1'18

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Net charge-offs continue to sting credit unions in Q1'18

Net charge-off trends continued to diverge at U.S. credit unions and community banks in the first quarter. During the first quarter, U.S. credit unions reported $1.46 billion in net charge-offs, a 13.4% increase year over year and equal to 0.60% of average loans. Meanwhile, net charge-offs at U.S. community banks fell 13.4% year over year to $464.1 million, or 0.09% of average loans.

Thirteen of the country's 20 largest credit unions by loans and leases reported an increased net charge-off ratio year over year in the first quarter.

As of March 31, U.S. credit unions reported $7.27 billion in nonperforming assets, up 3.2% year over year and equal to 0.51% of total assets, compared to 0.52% in the year-ago quarter. U.S. community banks posted a 6.8% decrease in nonperforming assets year over year to $26.52 billion, or roughly 0.93% of total assets, a decrease of 14 basis points year over year.

Delinquent loans and leases at U.S. credit unions hit $15.22 billion at the end of the first quarter, representing roughly 1.55% of total loans and leases, compared to 1.59% in the year-ago quarter. Delinquent used-vehicle loans increased by $282.1 million to $3.79 billion, while delinquent first-mortgage real estate loans jumped 10.1% year over year to $5.09 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.