Credit cards led the way in what was overall very weak creditunion loan growth in the second quarter, according to data reportedto the NCUA.

The regulator reported that loans at the 7,445 federally insuredCUs grew by only 0.1%. Unsecured credit cards grew at 1.7%, realestate loans by 0.4%, a boost the agency attributed to a 10.8%increase in mortgage modification loans. Used vehicle loansincreased while loans for new vehicles dropped.

The agency also reported that overall delinquency and loanlosses at CU “inched lower” in the second quarter, a fact NCUABoard Chairman Debbie Matz argued could mask bad news. “Creditunions in many areas continue to experience greater loanlosses?particularly in states struggling with high unemployment,declining real estate values, and failing businesses,” Matz pointedout. “These trends are also having a severe impact on many creditunion members. As their debts become overwhelming, members who aredealing with job losses and foreclosures are now much more likelyto file for bankruptcy.”

However, credit unions' net worth ratio held steady at 9.9% inthe second quarter, and more than 95% still meet or surpass thestatutory definition of “well-capitalized.”