ALEXANDRIA, Va. – NCUA recently released the first quarter data for federally insured credit unions showing what credit unions already feel: loan growth dropping off and shares gaining momentum.
Though loans at federally insured credit unions have grown 10.39% in the 12-month period ending March 31, 2006-slightly below all credit unions, including privately insured credit unions-first quarter 2006 saw less than 1% growth for the nation's 8,617 federally insured credit unions. Meanwhile, delinquencies dropped from 0.73% at year-end to 0.59% as of March 31, 2006. The amount of delinquent loans and charge-offs declined 13.1%
In the same time frame, shares increased 3.0% to $594.7 billion from $577.4 billion at the end of last year.
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"I commend credit unions for their continued expert financial management skills as the pace of loan demand slowed, savings grew and net worth continued to maintain a consistent, healthy level in the early months of 2006," NCUA Chairman JoAnn Johnson said. Still credit unions ended the quarter with an average net worth ratio of 11.16%, she pointed out.
Other first quarter figures from NCUA included:
* Assets increased 2.5% to $695.4 billion from $678.7 billion;
* Investments increased 0.92% to $149.3 billion from $148.0 billion;
* Net worth to total assets ratio declined to 11.16% from 11.24%; and
* Membership increased 0.5% to 84.9 from 84.5 million members.
Credit unions' largest income producing loan category, first mortgages, grew 2.2% and other real estate loans were up 2.7%. At the same time unsecured credit cards were down 3.9%.
NCUA Vice Chairman Rodney E. Hood commended credit unions for the role they play in providing capital for small businesses and mortgage lending as part of President George W. Bush's pro-growth economic policies. America's credit unions continue growing real estate and construction lending with first and second mortgages and home equity loans collectively increased nearly 5% in the first quarter. Additionally, assets and shares of federally insured credit unions continue to increase, representing $700 billion in assets, he noted.
"President Bush's pro-growth economic policies of cutting taxes and letting Americans keep more of their hard earned money means there will be greater access to capital for emerging entrepreneurs and investing opportunities for families in all communities and of walks of life," Hood said.
"Credit unions are in the business of providing access to credit and capital, and have maintained effective risk management of their portfolios. We look forward to continuing to build upon this success. At NCUA, we should be an agent of access to facilitate flexible investment tools for credit unions, to effectively enhance risk management through innovative initiatives to mitigate risks."
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