Credit union loans hit $1 trillion in June; assets at $1.43 trillion

Federally insured credit unions (FICUs) saw growth in total assets of 5.8% ($79 billion) to $1.43 trillion during the 12-month period ending June 30, while lending was up 9.8% ($89 billion) to a total of $1 trillion, the National Credit Union Administration (NCUA) said Thursday based on second-quarter call report data.

Source: NCUA

Insured shares and deposits rose $56 billion, or 5.2%, over the 12 months ending June 30, totaling $1.13 trillion.

The 9.8% loan growth over the 12 months ending this June is barely changed from the trend shown in first-quarter data, which showed loans up 9.9% from March 2017 to March 2018.

The second-quarter growth was driven mostly by the 302 credit unions reporting total assets of $1 billion or more, according to the data released Thursday. These institutions logged 13.7% loan growth for the one-year period, NCUA said. In the smallest asset categories (below $100 million), total loans outstanding decreased on average.

In other second-quarter call report results:

  • FICUs’ average net worth ratio was 11.01% in the second quarter of 2018, up from 10.80% one year earlier.
  • Net income totaled $12.7 billion at an annual rate in the second quarter of 2018, up $2.5 billion, or 24.8%, over the past 12 months.
  • FICUs’ net interest margin was $43.2 billion in the second quarter of 2018, or 3.1% of average assets. That compares with $38.7 billion, or 2.9% of average assets, in the second quarter of 2017.
  • Return on average assets was 90 basis points over the past 12 months, up from 77 basis points. (Median return on average assets was 52 basis points, up 15 basis points.)

NCUA reported that total FICUs in existence declined to 5,480 in the second quarter of 2018 (down from 5,696 in the second quarter of 2017). Of the total, 3,444 were federal credit unions and 2,036 were federally insured, state-chartered credit unions. NCUA said the year-over-year decline “is consistent with long-running industry consolidation trends.”

NCUA said the 5,480 insured credit unions reporting serve 114.1 million members (with 4.8 million members added over the past 12 months ending June 30).

NCUA Quarterly Credit Union Data Summary Q2

5300 Aggregate Financial Performance Reports

NCUA release