Credit union lending up nearly 10% in year ending with 1Q ‘18

Federally insured credit unions expanded their loans by $87 billion in the one-year period ending March 31, the federal regulator of credit unions said in releasing quarterly results Wednesday.

The National Credit Union Administration (NCUA) said the increase in lending was up 9.9% from the end of the same period last year. Total outstanding loans at the end of March, NCUA said in a release, were $971.9 billion.

Meanwhile, delinquency rates and net charge offs at the cooperative financial institutions were both mostly unchanged over that year period, to 66 basis points for delinquencies (down slightly from the year before), and to 60 basis points for net charge offs (up slightly from first quarter 2017).

Total assets were $1.4 trillion for the federally insured credit unions, NCUA said – up $79 billion from the end of the 2017 first quarter, or 5.9%.

Memberships at the credit unions were also up, NCUA reported, stood at 112.7 million at the end of March – up 4.7 million members over the year-to-year figure.

However, the total number of credit unions declined, again, during the year’s period – from 5,737 in the first quarter of 2017 to 5,530 in the first quarter of 2018. The agency also noted that, in the first quarter of 2018, there were 3,477 federal credit unions and 2,053 federally insured, state-chartered credit unions.

“The year-over-year decline is consistent with long-running industry consolidation trends,” the agency said in a release.

The agency also reported:

  • Insured savings rose $58 billion, or 5.5%, over the four quarters ending March 2018, to $1.13 trillion.
  • Credit unions’ net worth ratio was 10.88% in the first quarter of 2018, compared with 10.69% the year before.

NCUA Releases Q1 2018 Credit Union System Performance Data