ALEXANDRIA, Va. — The nation's 8,100 federally insured creditunions reported solid loan and share growth along with an increasein loan delinquencies and membership expansion for 2007.

With membership growth to 86,837,478 during 2007 loan growth wasat 6.6% and share growth was 5.2%. Investments expanded 4.9%following several years of decline, with credit unions primarilyinvesting in the corporate credit union system. “I am pleased tonote that call report results indicate that cornerstone of creditunion stability, net worth remains high at 11.44%,” said NCUAChairman JoAnn Johnson. “Real estate loans increased 11.0% to$271.1 billion in 2007 illustrating credit unions are activelyengaged in serving their members' mortgage lending needs.

Meanwhile, real estate loans delinquent two months or more grewfrom .34% to .67%. Foreclosed real estate increased 102.2% to$331.9 million, and although a marked increase, foreclosurescontinue to represent .12% of total real estate loans. Credit carddelinquencies were a reported 1.33% of total credit card loans atyear-end 2007. The total loan delinquency ratio for federallyinsured credit unions increased from .68 to .93% during 2007.

“Reflecting widespread volatility in the mortgage market, whichhas migrated to many segments of the economy, credit unions areseeing increased delinquencies in various areas of lending and inforeclosures,” Johnson observed. “Not withstanding, it is importantto note that the delinquency increases, though material, do notthreaten the overall safety, soundness and stability of the creditunion industry.”

“While these statistics pinpoint the changes credit unions arecurrently undergoing in the face of instability in the economicsector, I am confident that, on the whole, credit unions continueto perform well, and I encourage credit unions to stay the courseand remain vigilant stewards offering a safe, sound place for theirmembers to save and borrow and meeting their financial serviceneeds,” Johnson said.

Major loan categories grew in 2007, with the exception of aslight 1.8% decline in new automobile loans, which ended the yearat $86.9 billion. While other types of real estate loans grew 8.7%to 91.7 billion, first mortgage real estate loans grew 12.3% to179.4 billion. Used automobile loans grew 1.7% to 89.1 billion, andunsecured credit card loans grew 13.4% to $30.1 billion.

Documenting the move to fixed rate loans in 2007, fixed ratefirst mortgage loans increased 14.%, balloon/hybrid first mortgageloans increased 13.2%, and adjustable rate first mortgage loansincreased 3.9%.

Share certificate accounts grew 14.4% to $216.1 billion, whilemoney market share accounts grew 10.7% to $111.2 billion, and IRAand KEOGH accounts increased 9.3% to $56.9 billion. Share draftsgrew 1.9% to $71.6 billion and regular share accounts decline to7.0% to 168.4 billion.

Loan-to-share ratio increased to 83.3% and the year ended with anet worth ratio at federally insured credit unions of 11.44%. Withnet loan charge-offs of $2.6 billion, the net charge-off ratio was.50%, and the return-on-average-assets declined to .65.

Details of year-end 2007 data are available in a balance-sheetformat and a December 2007 Facts/Summary statement athttp://www.ncua.gov/data/FOIA/foia.html.

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