ALEXANDRIA, Va. (5/13/14)--America's credit unions turned a corner in 2013, as federally insured credit unions experienced one of the best years on record, National Credit Union Administration Chairman Debbie Matz wrote in the 2013 annual report.
Highlights of 2013 touched on in the report include:
Credit union membership of 96.3 million;
Total assets of $1.06 trillion; and
An aggregate net worth ratio of 10.78%, the highest level reported since the first quarter of 2009.
In 2013, "a strengthening economy led to increased loan demand and fewer delinquencies," Matz added. Loans expanded by 8% from 2012's total, with loans growing in all categories.
Credit unions' combined delinquency ratio totaled 1.01%, a 15 basis-point (bp) decline from 2012's total, the NCUA reported. Charge-offs also declined to 0.57%, a 16 bp reduction from 2012's total.
The report also detailed its four strategic goals of:
Ensuring a safe, sound and healthy credit union system;
Promoting credit union access to all eligible persons;
Further developing a regulatory environment that is transparent and effective, with clearly articulated and easily understood regulations; and
Cultivating an environment that fosters a diverse, well-trained and motivated staff.
Of its 11 targets for ensuring a safe and healthy credit union system, NCUA missed only one--maintaining an aggregate net long-term asset ratio of less than 35%.
Under promoting credit union access, NCUA met seven of its eight targets, which included addressing consumer complaints within 45 business days, amassing a greater social media audience on Twitter, Facebook and YouTube and increasing exposure to its financial literacy website.
It met all five of its targets for its regulatory environment goal. It completed 26 fair lending examinations in 2013--above its target of 18 annually. The number of webinars more than tripled to 17. The publishing of information on the NCUA Guarantee Notes Program and the annual review of one-third of credit union regulations also were achieved.
For its work environment, NCUA met four of 10 targets--falling short in staff diversity and enhancing communications within the agency vertically and horizontally.
The NCUA expended just over 97% of its $248.8 million operating budget after returning $2.6 million of excess cash in the mid-session budget review, thereby reducing operating fees, according to a statement by NCUA Chief Financial Officer Mary Ann Woodson.
Increasing complexity, greater concentration of assets, rising interest rates, increasing liquidity needs and emerging cybersecurity threats were some of the threats facing credit unions in 2013, the NCUA added.
The report serves as the agency's official report to the president and Congress, and covers NCUA and credit union operations. The report also tabulates 10 years of financial trends for credit unions and the NCUSIF.
For the full NCUA report, use the resource link.