Net income and net worth increased at federally insured creditunions during the third quarter but overall lending was flat andthe rate of member bankruptcies increased over last year, accordingto data released today by the NCUA.

|

From July through September, those credit unions had an 11.3%increase in net income, from $1.8 billion to $3 billion. Net worthrose from $89.3 billion to $90.6 billion, a 1.4% jump.

|

The delinquency ratio rose to 1.74% from 1.73% in the secondquarter. Overall credit union lending was virtually unchanged-itrose 0.1%. Real estate loans rose 0.1%, used car loans rose only1.8% and unsecured loans increased by 1.4%. New vehicle loans fell3.6%.

|

The data also showed that the number of members filing forbankruptcy was 268,141 through the third quarter of 2010, comparedto 246,386 over the same nine months of 2009. Member bankruptciesreached 323,737 at the end of 2009.

|

Foreclosed and repossessed assets grew 8.3% to $1.8 billion inthe third quarter.

|

NCUA Chairman Debbie Matz tried to highlight the positiveresults, while acknowledging the difficulties.

|

"Positive trends are emerging," she said in a statement. Matzsingled out a 0.45% increase in return on average assets, comparedwith a 0.40% rise during the second quarter of 2010.

|

She added while credit unions are making progress the agency iswell aware of the "stressed financial environment'' facing manycredit unions, and that is why the agency is increasing the size ofits examination staff and making the examination process morerigorous.

|

The 2011 budget approved by the NCUA Board earlier this monthincludes funds to add 78 people to the examination staff, including60 field staff.

|

For more information on the data, go to: http://www.ncua.gov/DataServices/FOIA/foia.aspx

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.