Third-quarter figures for federally insured credit unions thisweek were welcome news and the result of a lot of hard work bycredit union professionals around the country. Certainly not agift, though we all appreciate those (iPad2, please), but somethingto savor because you've earned it.

Credit unions can certainly ring out the jingle bells over theirthird-quarter figures. Loans grew 1.6%, and the NCUA reported sixstraight quarters of loan growth. Despite still historically highshare growth, the loan-to-share ratio nationally increased to68.4%, roughly a percentage point below last year's close but notthe meteoric 7, 4 and 3 percentage point plummets, respectively in2009, 2010 and 2011.

Now for an industry-wide New Year's resolution, clean and jerkthat ratio right up over its head – just like you'll be pumping upyour biceps with your new gym membership.

Private student loans jumped nearly 13% in the third quarter,tallying a 38% annualized increase. Student lending is a great wayto attract younger members, learning from them and engaging themwith your credit union and its other products will help creditunions remain relevant in a world that no longer requires anyone tohave any relationship with any traditional financialinstitution.

The Cooperative Trust's Brent Dixon wrote an excellent blog for the CU WaterCooler recently highlighting exactly how the generation borninto this modern world can fulfill all of their financial needswithout financial institutions. A scary thought, but these areexciting times we live in. One concern of course with the studentloans is whether this bubble will pop like a party balloon,particularly if unemployment continues its agonizingly slowimprovement.

Expanding credit union business lending could help fix that, butCongress doesn't seem ready to do that. Credit unionrepresentatives have testified on Capitol Hill about their smallbusiness activities and constraints. They've hiked the Hill onbusiness lending until it's nearly worn down to a nub. The NCUA hastold Congress it would strictly regulate who got the increase andthe reporting. There is truly no other reason not to pass anexpansion in business lending for credit unions except that thebankers will pitch a hissy fit.

Well, too late for that. Frank Keating of the American Bankers Association wrote in arecent op-ed in The Hill, “In an era of crushing deficits,is it appropriate for an extremely profitable $1 trillion industryto freeload while all other businesses in the United States paytheir fair share of federal taxes? Moreover, should Washingtonpolicy steer business away from institutions that pay a third oftheir income to support critical government services toinstitutions that pay nothing and enjoy those same services?”

Two things. First, business is not being steered anywhere. It'scalled free will of the business owners to do business as they seefit. Second, banks do not pay one-third of their income togovernment revenues.

A 2007 GAO study found that banks' tax deductions totaled $108billion in 2004 and tax credits tacked on another $200 million. Bycomparison, the Treasury Department estimated that the value of thetax-exempt status for credit unions was only $1.4 billion in 2007.In addition, banks' net income increased an average of 7% annuallyover the decade prior to the study, while credit unions' net incomewas up just 3% in the same time period. In 2006, banks and thriftsearned $146 billion compared to $6 billion in retained earnings forthe entire credit union industry.

“What's worse, small town bankers worry they will be left topick up the pieces when credit unions with newfound powers do whatso many of the inexperienced do: underestimate and overextend,”Keating wrote condescendingly. Banks bailing out credit unions.That's rich.

In fact, in line with one of the bankers' arguments for whycredit unions don't need an expansion on the MBL cap, credit unionshaven't charged eagerly toward their 12.25% cap over the past 14years since it was implemented. Credit unions are easing intobusiness lending, with the NCUA reporting just a 1.5% increase inthe third quarter. And, counter to the Keating article, creditunions aren't particularly known for a Polar Bear Club attitudewhen it comes to taking risks, so they aren't diving into Arcticwaters with both feet.

But if bankers know anything, it's about underestimating andoverextending. Credit unions grew lending this year while creditquality improved. The community's delinquency ratio dropped to1.17%, relative to commercial banks, which declined to 5.03% asreported by the FederalReserve. The banker Grinches can stick that in their holidaypipe and smoke it.

People are turning to credit unions more than decades. Creditunions' membership increased 2.9% in the last 12 months accordingto CUNA's figures. Credit unions and consumers deserve the giftthat keeps on giving – burgeoning credit union membership andexpanded services, including small business lending.