Total loans outstanding at federally insured credit unions increased to $823.4 billion during the second quarter of 2016, an increase of 10.5% from a year ago, the NCUA said Tuesday.

At the same time, delinquencies rose in several loan categories, according to data based on the agency's Call Reports. The delinquency rate rose 1 basis point from last year and stood at 75 basis points, the agency said.

“Going forward, it's important for credit unions to remain diligent in assessing underwriting risks to keep overall system risk to manageable levels,” NCUA Chairman Rick Metsger said, as the agency released the data.

Year over year, loans grew in every major category, with new auto loans leading the pack, with a 15.6% increase, to $107.3 billion. Used auto loans increased 13.1%, to $173 billion.

Total real estate lending grew 8.7%, to $411.2 billion, while payday alternative loans rose 4.2%, to $119.9 million at an annual rate.

Total investments by federally insured credit unions dropped 2.5%, to $271.9 billion.

The delinquency rate for credit cards was 93 basis points, compared with 86 points a year earlier, the agency said. The delinquency rate for fixed real estate was 55 basis points, down from 68 basis points in the second quarter of 2015.

The delinquency rate for member business loans stood at 149 basis points, 47 basis points higher than in 2015.

Consolidation among credit unions continued in the second quarter. There were 272 fewer credit unions during the second quarter of the year, with the number of federally insured credit unions standing at 5,887.

The percentage of federally insured credit unions that were well capitalized remained steady, with 97.8% reporting a net worth ratio at or above the 7% required by law.

Instant Insights /

Lending and Delinquencies Increase in Q2: NCUA

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