Net income rose 6.2% to $637 million among the ten largest credit unions for the fourth quarter, as a strong gain in net interest income was reduced by higher expenses for loan losses and operations, according to NCUA fourth-quarter call reports.

During the three months ending Dec. 31, the Top 10 credit unions granted $9.4 billion in real estate loans, down 1.4% from 2016's fourth quarter. The volume for cars, credit cards and other non-real estate loans rose 12.7% to $18.1 billion.

Some of the largest gains were for private student loans and business loans.

The Top 10 ended 2017 with total loans of $166 billion, up 11% from December 2016. Net charge offs rose 18.5% to $428.3 million, while the provision for loan losses rose 11.5% to $465.1 million for the three months ending Dec. 31.

For the year, net income rose 10.9% to $2.5 billion. Net interest income rose 16.2% to $5.6 billion even after the provision for loan losses rose 21.6% to $1.8 billion and net charge offs grew 23.9% to $1.5 billion.

Loans that were at least 60 days late rose 17.3% to $1.6 billion. The delinquency rate ended the year at 0.97%, up 5 basis points. Delinquencies among all credit unions was about 0.8%.

Private student loans nearly doubled to $564.1 million reflecting movement by two of the biggest of the big: Navy Federal Credit Union of Vienna, Va. ($90.6 billion in assets, 7.5 million members), and Pentagon Federal Credit Union of Alexandria, Va. ($22.9 billion in assets, 1.6 million members). Navy FCU more than doubled its student loans to $345.2 million, while Pentagon FCU, which entered the field in 2016, ended 2017 with $110.5 million in student loans.

Member Business Loans rose 30.5% to $4.5 billion, including $1.7 billion in loans for 1- to 4-unit homes. BECU of Seattle ($17.9 billion in assets, 1.1 million members) contributed the largest increase, rising 73.5% to nearly $1.5 billion, including $465.6 million in homes and condos. At Alliant Credit Union of Chicago ($9.7 billion in assets, 385,302 members) MBLs rose 41.1% to $501.5 million, none of it residential.

The NCUA call reports began including new commercial loan definitions in the third quarter. For the fourth quarter they show $3.1 billion in commercial loans backed by real estate, and $62.8 million in loans not backed by real estate.

Car loans grew 13% overall – on par with other credit unions. Loans for new cars rose 11.9% to $20 billion, while those for used cars rose 12% to $21 billion.

Four of the Top 10 increased their car loan portfolios 19.6% to $12.3 billion – more than twice the rate of the other six. The big gains came from SchoolsFirst Federal Credit Union, Santa Ana, Calif. ($14.1 billion in assets, 793,592 members), The Golden 1 Credit Union, Sacramento, Calif. ($11.5 billion in assets, 921,901 members), First Tech Federal Credit Union, Mountain View, Calif. ($11.4 billion in assets, 506,442 members) and America First Federal Credit Union, Riverdale, Utah ($9.2 billion in assets, 905,161 members).

The only Top 10 credit union to show a decline in car loans was a 4.1% overall drop by Security Service Federal Credit Union of San Antonio, Texas ($9.5 billion in assets, 750,971 members), one of the largest indirect lenders among credit unions. New car loans fell 5% to $2.5 billion, while used car loans fell 3.2% to $2.6 billion.

Assets for the Top 10 grew 10% to $234 billion, representing 17% of assets of all federally insured credit unions. Membership grew 8.8% to 16.8 million, representing 15% of all members. The Top 10's membership growth rate was twice that of other credit unions.

Other key results included:

Net interest income rose 19.2% to $1.5 billion in the quarter, and 16.2% to $5.6 billion for the year.
Fee income fell 10.9% to $238.1 million for the quarter, and rose 13.8% to $895.9 million for the year.
Other operating income rose 15.9% to $457.3 million for the quarter, and rose 4.8% to $1.8 billion for the year
Wages and other non-interest expenses rose 16% to $1.5 billion for the quarter, and 11.4% to $5.7 billion for the year.

The line-up for the Top 10 changed only slightly. America First FCU, Riverdale, Utah ($9.2 billion in assets, 905,161 members) rose to the No. 10 spot, edging out Star One CU, San Jose, Calif. ($9 billion in assets, 101,752 members).

Top 10 Credit Unions

Amounts for year ending Dec. 31, 2017

1. Navy FCU, Vienna, Va. ($90.6 billion in assets, 7.5 million members)

2. State Employees' CU, Raleigh, N.C. ($37.3 billion in assets, 2.3 million members)

3. Pentagon FCU, Alexandria, Va. ($22.9 billion in assets, 1.6 million members)

4. BECU, Seattle ($17.9 billion in assets, 1.1 million members)

5. SchoolsFirst FCU, Santa Ana, Calif. ($14.1 billion in assets, 793,592 members)

6. The Golden 1 CU, Sacramento, Calif. ($11.5 billion in assets, 921,901 members)

7. First Tech FCU, Mountain View, Calif. ($11.4 billion in assets, 506,442 members)

8. Alliant CU, Chicago ($9.7 billion in assets, 385,302 members)

9. Security Service FCU, San Antonio, Texas ($9.5 billion in assets, 750,971 members)

10. America First FCU, Riverdale, Utah ($9.2 billion in assets, 905,161 members)

Total Top 10 ($234 billion in assets, 16.8 million members)

Source: NCUA

Instant Insights /

Top 10 Credit Union Income Growth Lags

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