Credit union shares, deposits top $1 trillion in third quarter

Insured shares and deposits at federally insured credit unions grew to more than $1 trillion for the first time in the third quarter of 2016, while membership reached 106.2 million, according to the National Credit Union Administration.

Total assets grew by 8.2% compared with last year’s third-quarter, according to an NCUA news release. Overall, these credit unions reported an annualized net income of $9.7 billion for the first three quarters of 2016, up 5.7% from a year earlier.

“By almost any measure, America’s credit unions as a whole continue to grow,” NCUA Board Chairman Rick Metsger said in the release. “Rising credit union membership has boosted deposits, and loans have continued to grow at a double-digit pace.”

The figures are based on call report data the NCUA received from the credit unions for the third quarter.

Total loans outstanding at federally insured credit unions reached $847.1 billion at the end of the third quarter, an increase of more than 10% from a year earlier, according to the NCUA release. The overall delinquency rate changed little compared with a year earlier.

New auto loans increased by 15.8% in the third quarter compared with the same quarter last year, while used auto loans rose by $12.3% and real estate lending grew by $8.2%, the release stated.

This largest growth was concentrated among federally insured credit unions with more than $500 million in assets, according to the release, as was the case in last  year’s third quarter report.

Overall, investment levels by federally insured credit unions continue to slowly decline. Short-term investments of less than one year increased by 11.5%, according to the NCUA, but longer-term investments saw declines anywhere from 4.5% to 19.7%.

Despite mostly positive trends, Metsger said in the release that “federally insured credit unions must guard against risks on the horizon like rising interest rates and regional economic downturns, particularly in energy-producing states.”

The NCUA also reported that credit union system consolidation continued in the third quarter, mostly due to mergers. The number of federally insured credit unions in the third quarter was 5,844, down 246 from the previous year, according to the release. About 70% of the decline occurred in credit unions having assets under $10 million, the release stated.

More details of the September 2016 Call Report Data are available by clicking here.

By |2019-11-25T07:36:42-06:00December 28th, 2016|Financial Services|0 Comments

Leave A Comment