Credit unions reported better income and stronger lending in thesecond quarter of this year, according to NCUA.

Citing credit union call reports, NCUA said net worth ratios“bounced back” and that return on average assets continued rosealong with net income. The aggregate net worth ratio increased from9.97% last quarter to 10.14% this quarter, the agency said, citing“relatively static operating expenses and provision for loanlosses,” as part of the reason.

“The second quarter financials demonstrate the continuedresilience of the credit union industry,” NCUA Board ChairmanDebbie Matz said. “Specifically, I am pleased to see that netincome has risen significantly since 2010, and that lending hasgrown for the first time in four quarters. NCUA's 2010 ruleproviding for short-term or payday loan alternatives hascontributed to the recent growth. In the latest quarter, creditunions made 52 percent more of these alternative short-term loans,”she added.

Specific data included that net income increased 10.7% from lastquarter, totaling $3.58 billion for 2011 to date; net worthincreased 2.0% this quarter to $95.6 billion from $93.7 billion;assets increased 0.3% to $942.5 billion from $939.3 billion; sharesincreased 0.1% to $812.2 billion from $811.7 billion; investments,not including cash on deposit or cash equivalents, increased 0.8%in the second quarter to $255.8 billion from $253.7 billion; andloans rose 0.7% to $564.0 billion from $559.9 billion.