Loan Demand and Other Indicators Down in 1st Quarter, NCUA Reports
Loan demand declined in most categories during the first quarter of 2010 and this added to the difficulties facing many federally insured credit unions, the NCUA reported today.
The loan-to-share ratio was 73.2%, compared with 76% at the end of 2009.
Loan income was $8.7 billion during the first quarter of 2010, a 2.4% decline from the final quarter of 2009 and a decline from $8.9 billion during the first quarter of 2009.
FICUs had $773.2 billion in deposits, a 10% increase over the $752.7 billion at the end of 2009. Membership grew to 90.2 billion members from 89.9 million, a 1.4% increase.
"We have been cautioning credit unions that 2010 will be a difficult year. Early indications show this to be the case," NCUA Chairman Debbie Matz said in a statement. "As long as serious economic issues persist, credit unions will be challenged. The NCUA is taking administrative actions wherever necessary to uphold safety and soundness standards."
At FICUs, first quarter delinquent loan ratio was 1.76%, compared with 1.83% during the previous three months and 1.46% during the first quarter of 2009.
The net worth ratio was 9.87% during the first quarter of 2010, compared with 9.9% during the last quarter of 2009 and 9.66%, during the first quarter of 2009.
Investment income was $1.4 billion during the first quarter of 2010, a 7% decline from the fourth quarter of 2009 and down $1.6 billion from the first quarter of 2009.