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Brisk Loan Growth in Second Quarter
Friday, August 30, 2013 6:45 AM

Second-quarter data show federally insured credit unions saw brisk loan growth, their highest net worth ratio since 2008 and record membership levels, the National Credit Union Administration reported yesterday.

“The increases in lending, net worth and membership are especially positive signs,” NCUA Board Chairman Debbie Matz said. “The brisk loan growth shows that federally insured credit unions are meeting the needs of more borrowers and putting their assets to productive use. The net worth ratio rose to 10.5 percent, its highest level since 2008. Credit union membership continues to reach a new milestone each quarter.”

Loans were up 2.3 percent in the second quarter, and 5.5 percent in the last four quarters, the strongest four-quarter growth since the start of 2009.

“Although the industry is performing well overall, smaller credit unions continue to face challenges with making loans, generating earnings and attracting members,” Matz added. “NCUA is committed to providing assistance and support to ensure the viability of small credit unions so they can continue to serve local communities.”

NCUA released the new industry figures based on Call Report data submitted to and compiled by the agency for the quarter ending June 30, 2013.

Membership in federally insured credit unions reached 95.2 million, a record high, in the second quarter of 2013. Membership grew by 560,670, or 0.6 percent. Nearly 2.1 million Americans have joined a credit union in the last four quarters.

While adding members, the number of federally insured credit unions dipped to 6,681, a drop of 72. The decrease is consistent with recent trends, as most consolidations were voluntary mergers.

Federally insured credit unions reported $613.7 billion in total loans in the second quarter of 2013, an increase of $13.8 billion over the previous quarter.

Lending by federally insured credit unions grew in nearly every category, including:

  • First mortgage real estate loans rose to $253.8 billion, up 2.1 percent for the quarter and 5.6 percent year-over-year.
  • New auto loans expanded to $66.4 billion, up 2.8 percent for the quarter and 10.7 percent for the last four quarters.
  • Used auto loans rose to $121.3 billion, up 3.7 percent for the quarter and 9.3 percent for the year ending June 30.
  • Net member business loan balances grew to $43.5 billion, up 2.3 percent for the quarter and 8.3 percent for the prior 12 months.

More details are available on the NCUA website.