ALEXANDRIA, Va. (2/22/08)—Federally insured credit unions reported 6.6% loan growth, 5.2% share growth, and a 1.3% increase in membership to slightly more than 86.8 million for 2007, according to National Credit Union Administration (NCUA) figures. The agency’s data on lending showed an increase in real estate loans delinquent 2 months or more, up from 0.34% a year earlier to 0.67% during 2007. Foreclosed real estate increased a startling 102.2% to $331.9 million, but continued to represent a very small 0 .12% of total real estate loans, according to the NCUA. Also, credit card delinquencies were a reported to be 1.33% of total credit card loans at year-end 2007. The total loan delinquency ratio for federally insured credit unions increased 25 basis points to 0.93% from 0.68%. Chief Economist Bill Hampel of the Credit Union National l Association (CUNA) offered this perspective Thursday: “Although the end of 2007 saw rising loan losses and falling net income for credit unions, they remain very well capitalized.” Other major balance sheet categories reported by the NCUA for federally insured credit unions from Dec. 31, 2006, to Dec. 31, 2007, included:
* Assets increased 6.1% to $753.5 billion from $710.0 billion; * Loans increased 6.6% to $526.9 billion from $494.4 billion; * Investments increased 6% to $142.5 billion from $134.5 billion; *Shares increased 5.2% to $632.4 billion from $601.2 billion; and * Net worth increased 5.3% to $86.2 billion from $81.9 billion.
As the result of lending growth in most categories in 2007, the loan-to-share ratio increased to 83.3% for the year. CUNA’s Hampel said that, looking forward, the economic slowdown will retard loan growth and stimulate savings growth, with net income likely to come in well below historical norms. For the complete economic and credit union forecast from CUNA's economists, information and advice on how to respond to the effects of credit crisis, or more on the call report data submitted by the nation’s 8,100 federally insured credit unions, use the resource links below.