ALEXANDRIA, Va. (9/8/15)--Federally insured credit unions recorded another strong performance in the second quarter or 2015, according to data released Thursday by the National Credit Union Administration.
“Across America, there’s a growing recognition that credit unions offer solid value to their members,” said NCUA Chair Debbie Matz. “More people see credit unions as an affordable financial services alternative. Credit unions continue to increase lending while taking steps to shed certain investments that would pose risk when interest rates inevitably begin to rise. All these trends are signs of a robust system.”
Total memberships in federally insured credit unions rose to 101.1 million as of June 30, up by 1.1 % during the quarter and 3.2% over the previous 12 months.
Growth was strong in several credit union categories. For instance, assets were up to $1.17 trillion, 0.8% above last quarter and 5.9% above the second quarter of 2014. Credit unions’ earnings (return on assets) rose modestly from 78 basis points in the first quarter to 84 basis in the second; and these earnings, combined with modest asset growth, raised the credit union overall net worth ratio from 10.81% in March to 10.92% in June.
Also, total member savings rose to $987 billion, 0.2% above last quarter and 4.9% above the second quarter of 2014.
Total loans outstanding rose to $745 billion, an increase of 3.2% from the previous quarter and 10.6% from second quarter of 2014. The strongest lending categories included:
Federally insured credit unions originated $35.3 billion in first mortgages in the second quarter, of which they sold 13.6 billion.
Net income for federally insured credit unions was $2.4 billion in the second quarter, an increase of 4.2% from the second quarter of last year. This marks the 22nd straight quarter federally insured credit unions have recorded positive net income.
The NCUA data is consistent with CUNA Monthly estimates over the same period. CUNA released its estimates for July last week.