ALEXANDRIA, Va. — Federally insured credit unions saw anincrease in the net worth ratio and return on assets over the firsthalf of the year, while the aggregate net interest margin continuedto get squeezed.

“Federally insured credit unions continued strong performance inthe second quarter of 2006. Loans, shares, and net worth grew whiledelinquency, loan losses and bankruptcies declined,” according torecently released NCUA data on trends in federally insured creditunions.

Assets jumped up $18.32 billion to $697 billion, or 2.70%, inthe first half. At the same time the net worth ratio got a boostfrom 11.24% at year-end 2005 to 11.36% as of June 30 from a nearly$3 billion increase in net worth. Mortgages continued to lead theway in growth while new and used vehicle loans dipped (Seechart).