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Credit unions hit lending milestone – Credit Union Journal

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Federally insured credit unions posted strong third-quarter numbers as total loans outstanding topped $1 trillion.

The National Credit Union Administration on Thursday released data on the financial performance of federally insured credit unions in the quarter ending Sept. 30. A key highlight was loans growing more than 9 percent from a year earlier.

Overall net income totaled $13.6 billion, a jump of 30 percent from the same period a year ago.

Loans secured by 1-to-4 family residential properties increased almost 12 percent, to $439.9 billion, in the third quarter while auto loans increased almost 11 percent, to $361.7 billion. Credit card balances rose more than 8 percent, to $59.4 billion, and non-federally guaranteed student loans rose more than 15 percent, to $4.9 billion.

Other positive trends included increases in assets and membership but the number of federally insured credit unions continued its long-term decline. At the end of the third quarter, there were 5,436 institutions, down more than 3 percent from a year earlier.

NCUA said performance by asset category was consistent with long-running trends: Credit unions with assets of at least $1 billion reported the strongest growth in loans, membership and net worth, while institutions with less than $100 million in assets reported declines in those metrics.

Other highlights include:

  • Interest income rose 13 percent, over the year, to $50 billion, and non-interest income increased almost 12 percent, to $19.9 billion.
  • Interest expense totaled $9.1 billion annualized in the third quarter, up more than 25 percent, from a year earlier. Non-interest expenses grew almost 8 percent, over the year, to $43.9 billion. Rising labor expenses, which were up about 8 percent, accounted for half of the increase in non-interest expenses.
  • Total assets rose by more than 5 percent, to $1.4 trillion.
  • Federally insured credit unions added 4.9 million members over the year, and membership reached 115.4 million in the third quarter.
  • The number of credit unions with a low-income designation totaled 2,561, up about 1 percent year over year.

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