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Minnesotans Continue Shift To CUs
ST. PAUL, Minn. (8/5/13)--Minnesota credit unions continued a trend of steady growth in the first half of 2013, maintaining gains in membership and loans, according to the Minnesota Credit Union Network.
 
"Minnesotans trust member-owned credit unions and have always been strong advocates for them," Mark Cummins, MnCUN president/CEO. He said many consumers feel that credit unions--rather than for-profit financial institutions-- are "more aligned with their values."
 
Overall, Minnesota's credit unions experienced mixed results in key financial performance indicators for the second quarter. However, modest economic growth is expected to improve credit union operating results during the remainder of the year, MnCUN said.
 
Minnesota consumers and businesses also continue to choose credit unions as their primary financial institution.
 
State results in key areas include:
  • Membership. Membership grew by 6,000 in the first quarter to reach 1,579,000-- a 0.7% growth rate. That number, although slightly behind the pace of the 0.9% growth reported in the first quarter 2012, illustrates state consumers' continued interest in the credit union business model, MnCUN said.
  • Assets. Assets declined by just four-tenths of a percent between the first and second quarter, with 6.2% growth between second quarter 2012 and second quarter 2013. Despite a drop from 9.4% in 2012 to 7.6% in the first quarter, total assets are well above the national average of 5.3%, said MnCUN. In the first quarter, Minnesota credit unions asset-quality measures improved. Overall, the 60-plus-day dollar delinquency rate fell to 0.90%, a 0.19% decline from fourth quarter 2012. The Minnesota credit union delinquency rate is less than half of that reported by Minnesota banks (1.82%).
  • Deposits. Deposits decreased 0.4% in the second quarter from the first quarter, but increased 6.9% from second quarter 2012. Core deposits grew to 41.6% in the first quarter from 40.1% in 2012, continuing a long-term positive trend.
  • Total loans. Loan balances increased 2.7% in second quarter, up from a 0.5% decrease in the first quarter. Year-over-year loan growth was 4.4% from second quarter 2012. Also, despite a first-quarter decrease in overall lending (0.5%), credit unions' member business lending grew at a rate of 1.6% during the same time.
  • Net income. Minnesota credit unions are rated as "well-capitalized" by the National Credit Union Administration, with a net worth of 9.99%. The NCUA considers a credit union as well-capitalized if its net worth is above 7%.
The summary and analysis was compiled by MnCUN from NCUA's quarterly report.
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