Increased Loan Loss Reserves Forecasted Dramatic Losses as COVID-19 Crisis Began
The National Credit Union Administration (NCUA) has released it’s year over year financial comparisons of Q1 2019 vs. Q1 2020. The report showed that some degradation in the health of the CU industry was already taking place in the months leading up to the COVID-19 crisis. While delinquency had risen, it had not yet “spiked” and cautionary precursors over the possibility of a major crisis attributed to large increases in allowance for loan losses that degraded the net incomes of the credit union industry by 40%.
Federal CU Incomes Dropped 40% Compared to Previous Year – Loan Loss Expectations Primary Culprit – NCUA – Credit Union Collections – Delinquency
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