ALEXANDRIA, Va. (12/7/15)--Federally insured credit unions continued to expand lending and reduce longer-term investments in the third quarter of 2015, according to data released by the National Credit Union Administration. The data is based on call report data submitted to and compiled by the agency for the quarter ending Sept. 30.
“Lending continues to grow, which goes hand-in-hand with the continuing economic recovery,” said NCUA Chair Debbie Matz. “The level of exposure to long-term investments that causes concern about interest-rate risk is declining, although there is still room for improvement. Overall, the third-quarter data indicate the credit union system maintains its soundness while fulfilling its primary mission of providing affordable credit.”
According to the NCUA, membership in federally insured credit unions increased by 3.4 million over the twelve months ending in September to 102,138,141.
Total loans outstanding at federally insured credit unions reached $769.5 billion in the third quarter of 2015, an increase of 3.3% from the previous quarter and 10.7% from a year earlier.
Total investments held by federal credit unions declined by 6.3% ($18.2 billion) from the third quarter of 2014. The long-term assets ratio fell to 32.4%, down from 35% at the end of the third quarter of 2014.
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“The third quarter was another great one for credit unions” said Bill Hampel, CUNA’s chief policy officer. “Continued strong loan growth and stable earnings are really good signs, although smaller credit unions are still facing headwinds. Earnings for credit unions with less than $50 million in assets averaged 29 basis points in the first three quarters, compared with 80 basis points for all credit unions.”