ALEXANDRIA, Va.–Credit unions have now reported nearly six consecutive years of growth, with the largest credit unions continuing to lead the way, according to data released by NCUA.
As CUToday.info reported here, membership growth and lending remain strong. Among other data released by NCUA based on June 20 Call Reports for all federally insured CUs:
- Net income for federally insured credit unions was $2.4 billion in the second quarter, an increase of $96.1 million, or 4.2%, from the second quarter of 2014. As a whole, federally insured credit unions have recorded positive net income for 22 straight quarters.
- This ongoing trend contributed to a rise in the system’s average net worth. The aggregate net worth ratio reached 10.92% at the end of the second quarter, up 16 basis points from a year earlier, NCUA said.
- The delinquency ratio at federally insured credit unions rose slightly in the second quarter, to 74 basis points, up from 69 basis points the previous quarter, but still well below the 85-basis-point level in the second quarter of 2014. 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.
- The percentage of year-to-date loan charge-offs due to bankruptcy in the second quarter was 17.3, 198 basis points below the end of the second quarter of 2014.
- Federally insured credit unions’ 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% of federally insured credit unions reported positive returns on average assets for the first half of 2015, compared to 74% in the first half of 2014.
- The great majority of federally insured credit unions remain well-capitalized, with 97.6% reporting a net worth ratio at or above the statutorily required 7% at the end of the second quarter. A year earlier, 97% of credit unions were well-capitalized. As of June 30, 2015, less than one percent of federally insured credit unions were undercapitalized, NCUA said.
- Total assets in federally insured credit unions grew to $1.17 trillion at the end of the second quarter of 2015, a rise of $64.9 billion, or 5.9%, from the end of the second quarter of 2014.
- Overall, share and deposit accounts at federally insured credit unions increased $46.5 billion from the end of the second quarter of 2014 to $986.8 billion. Rate-sensitive money market accounts rose by $8.1 billion from the second quarter of 2014.
- As has been the case, NCUA reported that federally insured credit unions with more than $500 million in assets paced the system’s growth in most performance measures in the second quarter of 2015. With $827.8 billion in combined assets, these 467 credit unions held more than seven out of ten dollars of total system assets at the end of the quarter. This group of credit unions also reported the strongest growth in loans and membership and the highest return on average assets.
- Credit unions with assets of less than $10 million recorded positive loan growth, and had a higher net worth ratio than other peer groups, but membership declined in the first half of 2015.