NCUA: CU member, saving growth 'consistent'

ALEXANDRIA, Va. (8/21/08)—Federal credit union assets, loans, shares and membership showed consistent growth through the first sixth months of 2008, the National Credit Union Administration (NCUA) reported Wednesday.

The NCUA, which based its assessment on call report data submitted by the nation's 7,972 federally insured credit unions, said membership grew to nearly 88 million during that period.

Also, bucking the recent trend, savings growth outpaced lending in the first six months of the year: Savings grew a significant 7%, lending grew 3.7 %, and assets increased 6.5 % from January through June.

"Although current mortgage and credit markets continue to cause fluctuations in the financial sector, the overall fiscal condition of federally insured credit unions remains stable," said NCUA Chairman Michael E. Fryzel in a release.

He added that first mortgage real estate loans grew by 10.1%, "illustrating that credit unions continue to meet their members' mortgage loan needs."

Details of major balance sheet categories included:

  • Assets increased 6.5% to $802.5 billion from $753.4 billion;

  • Loans increased 3.7% to $546.4 billion from $526.9 billion;

  • Investments increased 17.3% to $167.0 billion from $142.5 billion;

  • The 7% increase brought shares to $676.9 billion from $632.4 billion;

  • Net worth increased 5.62% to $88.6 billion from $86.1 billion; and

  • Membership increased 1.3% to 87.9 million members.
The NCUA also reported that the loan-to-share ratio was 80.72%. With the exception of declines in new automobile and other unsecured loans and lines of credit, all major loan categories grew. In addition to a 10.1% increase in first mortgage real estate loans, which represent $198.1 billion, other types of real estate loans reported 1.7% growth to $92.8 billion, used automobile loans grew 3.3% to $92.0 billion, unsecured credit card loans grew 1.5% to $30.6 billion, and all other loans/lines of credit grew to $25.6 billion.

Major share accounts grew across the board in the first six months of 2008. Money market shares showed the greatest expansion with a 13.9% increase to $126.6 billion, share certificates grew 2.9% to $222.3 billion, while IRA/KEOGH accounts grew 7% to $60.9 billion. Share drafts grew 6.2% to $75.3 billion and regular shares grew 8% to $182.7 billion.

The loan delinquency ratio increased 4 basis points, up from .93% to .97%, and the net charge-off ratio increased from 0.51% to 0.71% during the first six months of 2008.

The return-on-average assets ratio declined from 0.64 percent to 0.52 percent primarily due to increased funds set aside for loan and lease losses. With savings growth outpacing loan growth in 2008, the loan-to-share ratio declined to 80.72% from the year-end level of 83.32%.

Use the resource link below for more details of the mid-year 2008 data.

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