Credit unions loans continued their decline in 2010, but credit unions made more loans for used cars, launched more credit card accounts and issued more first mortgage loans last year, according to NCUA.
The federal credit union regulator reported that loans for previously owned vehicles grew by 3.43% during 2010 and 0.2% in the last quarter. They also made first mortgage loans worth 2.69% more for the year and 0.7% in the fourth quarter and saw credit card balances increase by 3.1% for the year, a somewhat surprising ending as CU credit card lending declined by 2.9% in the first quarter of 2010.
However, overall CU loans declined 0.3% for the fourth quarter and 1.34% for the year, NCUA said.
“Credit unions, as a whole, are exhibiting positive trends in their operations,” NCUA Chairman Debbie Matz noted. “As the nation emerges from a prolonged economic contraction, the stabilization of many strategic indicators and evidence of improving economic trends demonstrate positive developments for credit unions. Virtually every key ratio improved by year-end -- net worth climbed to 10.06 percent; return on average assets grew 33 basis points after recovering from a decline in 2008 and showing slight improvement in 2009; and delinquencies, charge-offs, and cost of funds declined. To the maximum extent possible, NCUA will continue to ensure that this progress persists and credit unions remain well-positioned to serve American consumers.”