The National Credit Union Administration is reporting that assets, loans, and deposits (shares) at federally insured credit unions grew during the second quarter, as credit unions with more than $500 million in assets paced the industry’s growth.
Total assets in federally insured credit unions grew to $1.17 trillion at the end of the second quarter of 2015, a rise of 5.9 percent from the end of the second quarter of 2014. Deposits at federally insured credit unions increased $46.5 billion from the end of the second quarter of 2014 to $986.8 billion.
Total loans at federally insured credit unions reached $745.2 billion in the second quarter of 2015, an increase of 3.2 percent from the previous quarter and 10.6 percent from a year earlier. All major loan categories grew during the quarter. Outstanding new car, used car, and first mortgage loans grew by more than 3 percent during the second quarter. Net member business loans were up 2.9 percent during the quarter to $54.4 billion. Outstanding indirect loans stood at $124.7 billion -- up almost $6 billion during the quarter.
Since loans grew at a faster pace than deposits, the loans-to-shares ratio at the end of the second quarter was 75.5 percent, up 2.2 percentage points from the previous quarter and up 3.9 percentage points from the end of the second quarter of 2014.
According to NCUA, credit unions reduced their interest rate risk during the quarter, as the industry's net long-term assets ratio fell to 32.6 percent in the second quarter.
Net income for federally insured credit unions was $2.4 billion in the second quarter, an increase of $96.1 million, or 4.2 percent, from the second quarter of 2014. This was the twenty-second consecutive month that the industry reported positive net income. Year-to-date, credit union profits were $4.6 billion.
Year-to-date return on average assets ratio stood at an annualized 81 basis points at the end of the second quarter, equal to the level in the second quarter of 2014. Overall, 77 percent of federally insured credit unions reported positive returns on average assets for the first half of 2015, compared to 74 percent in the first half of 2014.
The aggregate net worth ratio reached 10.92 percent at the end of the second quarter, up 16 basis points from a year earlier. The vast majority of federally insured credit unions are well-capitalized, while 51 federally insured credit unions were undercapitalized.
Delinquent loans rose during the second quarter, while net charge-offs fell. The percentage of loans 60 days or more past due was 74 basis points, up from 69 basis points the previous quarter. The delinquency rate on member business loans was 1.02 percent -- up 8 basis points during the quarter. The net charge-off ratio declined to an annualized 46 basis points year-to-date from 49 basis points at the end of the second quarter of 2014.
Read the press release.
Read the financial trend report.
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