From Recession to Stability and Growth
This year was a transformative year for credit unions. It was a year in which credit unions made the transition from the losses of recession to the stability and growth of recovery. During the year, the industry topped $1 trillion in assets and grew strongly to approach 94 million members.
Looking at third-quarter results, the industry’s performance has been impressive by just about every measure. Return on average assets reached 86 basis points, a more than four-fold increase from the 18 basis points at the end of 2009. Industry net income rose and lending expanded, with low-income designated credit unions leading the lending expansion.
We made real progress on the initiative in 2012. Some highlights include the low-income credit union initiative. It’s now easier for qualified credit unions to receive and take advantage of the low-income designation, such as expanded member business lending, access to supplemental capital and eligibility for Community Development Revolving Loan Fund grants and low-interest loans. More than 2,200 credit unions now have the designation.
In addition, this year, to keep more people in their homes, NCUA finalized a new rule on troubled debt restructuring and loan workouts that gives credit unions more flexibility to modify loans without having to immediately classify them as delinquent.