National Credit Union Administration reported that federally insured credit unions saw brisk loan growth and their highest net worth ratio since 2008 in the second quarter.
Loans were up 2.3 percent or $13.8 billion in the second quarter to $613.7 billion with lending growing in nearly every category.
•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.
Indirect lending posted strong growth, increasing by $3.7 billion during the quarter to almost $84.4 billion.
Total shares and deposits were almost flat for the quarter, falling by almost $500 million. As a result, the loan to share ratio rose from 65.92 percent to 67.48 percent.
The industry’s net worth ratio stood at 10.5 percent of assets at the end of the second quarter, up 34 basis points from the end of the second quarter of 2012. The ratio is at its highest level since the fourth quarter of 2008. The industry remains well-capitalized, with 96.2 percent of all federally insured credit unions reporting a net worth above 7.0 percent. In the prior quarter, 95.8 percent were well-capitalized. Only 76 credit unions were undercapitalized as of June 2013 with 7 credit unions critically undercapitalized.
Credit union reported that combined delinquencies and net charge-offs rose by $1.1 billion in the second quarter to $8.1 billion. The delinquency ratio of federally insured credit unions for the second quarter of 2013 was 1.04 percent -- up 2 basis points during the quarter. The industry’s net charge-off ratio declined to an annualized 58 basis points at the end of the second quarter. Since the second quarter of 2012, federally insured credit unions’ net charge-off ratio has declined by 17 basis points.
Driven largely by increases in fee income and declines in loan-loss provisions, federally insured credit unions in the second quarter had a net income of more than $2.2 billion. The industry’s return on average assets ratio stood at an annualized 85 basis points at the end of the second quarter, inching closer to pre-crisis norms. Year-to-date, net income was almost $4.4 billion compared to slightly more than $4.2 billion for the same time period last year.
The rise in medium-term and long-term interest rates during the second quarter caused the accumulated unrealized gains/losses in available for sale securities to move from a gain of $2 billion at the end of the first quarter to a loss of $614 million at the end of the second quarter.
The following link summarizes the second quarter performance of federally insured credit unions.
Read the press release.
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Must be good for all financial institutions. Read that the FDIC reported banks with higher profits for 16 straight quarters. By my math, that is four years even with the "competition" from "tax-avoiding" credit unions.
ReplyDeleteProves that there is enough money for everyone and choices for American consumers to pick their provider of financial (aka banking) services.