HARRISBURG, Pa. (1/23/15)--Pennsylvania credit unions reported stronger membership and loan growth in the third quarter as well as solid earnings, high asset quality and increased capital ratios, according to the Pennsylvania Credit Union Association (PCUA).
Membership in Pennsylvania credit unions increased by 1.1% in the third quarter, up from a 0.9% advance in the second quarter, and a 0.8% increase in the year-prior, based on National Credit Union Administration data, the PCUA reported (Life is a Highway Jan. 22). Total membership at all 463 Pennsylvania credit unions finished the period at 3.83 million. The 1.6% 12-month growth in membership is more than two times higher than the state's population growth rate.
Lower unemployment and pent-up demand boosted credit union loan portfolios in the third quarter. The 2.7% quarterly jump was higher than the 2.2% second-quarter increase. New vehicle lending again led the way reflected by a 7.2% quarterly increase--eclipsing both the 5.9% second-quarter and 2.4% year-prior growth rates.
Used-auto portfolios grew by 4% in the third quarter, followed closely by unsecured personal loans increased at 3.5%. Pennsylvania credit union member business loan portfolios and first-mortgage portfolios each increased at roughly a 3% pace in the quarter, while credit cards were up 2.1%.
Earnings were healthy with an annualized return on assets (ROA) totaling 0.56%, a marginal decline over the second quarter's 0.60% ROA, but well above the 0.44% level recorded in the third quarter of 2013.
Strong earnings and modest asset growth pushed the Pennsylvania credit union aggregate capital ratio to 11.4% at the end of the third quarter--up from 11.2% at the end of the previous quarter. The state's aggregate ratio now stands at its highest level since 2008.