Brisk loan growth, record membership levels and the highest net worth ratio since 2008 topped the NCUA’s second-quarter report for federally insured credit unions.
The data, released Thursday, indicate a positive climate for the movement, according to NCUA Chair Debbie Matz.
“The brisk loan growth shows that federally insured credit unions are meeting the needs of more borrowers and putting their assets to productive use,” Matz said, noting that the net worth ratio rose to 10.5%, its highest level since 2008.
Most encouraging, perhaps, was membership growth. Membership in federally insured credit unions reached 95.2 million, a record high, in the second quarter of 2013. Membership grew by 560,670, or 0.6%. Nearly 2.1 million Americans have joined a credit union in the past four quarters.
“Credit union membership continues to reach a new milestone each quarter,” Matz said.
Loan growth among federally insured credit unions was also strong, totaling $613.7 billion during the second quarter, an increase of $13.8 billion over the previous quarter. Specific highlights included:
- First mortgage real estate loans rose to $253.8 billion, up 2.1% for the quarter and 5.6% year-over-year.
- New auto loans expanded to $66.4 billion, up 2.8% for the quarter and 10.7% for the past four quarters.
- Used auto loans rose to $121.3 billion, up 3.7% for the quarter and 9.3% for the year ending June 30.
- Net member business loan balances grew to $43.5 billion, up 2.3% for the quarter and 8.3% for the prior 12 months.
The industry’s net worth ratio stood at 10.5% of assets at the end of the second quarter, up 34 basis points from the same time in 2012. The ratio is at its highest level since the fourth quarter of 2008.
Net worth grew 8.3% over the previous four quarters, well above the 4.8% rise in assets over the same period. Overall net worth climbed 2.0 percent from the first-quarter level, to $111 billion.
Federally insured credit unions’ total assets grew by $669.3 million in the second quarter, an increase of 0.1% from the first quarter. The industry’s loans-to-shares ratio is now 67.5%, the NCUA said.
“Although the industry is performing well overall, smaller credit unions continue to face challenges with making loans, generating earnings and attracting members,” Matz said.