CU performance strong in 2014: NCUA 2014 annual report

June 24, 2015

ALEXANDRIA, Va. (6/24/15)--Credit unions had a strong year in 2014, and the National Credit Union Administration outlined its progress on nine categories of its Regulatory Modernization Initiative, according to NCUA’s 2014 Annual Report.

The report was released Tuesday and highlights the agency’s activities, policy initiatives and accomplishments for 2014.

“Last year marked the 80th anniversary of the Federal Credit Union Act, and it was a strong year in terms of credit union performance,” said NCUA Board Chair Debbie Matz. She noted the Regulatory Modernization Initiative, which began in 2011, “focuses on modernizing NCUA’s rules and regulations to protect safety and soundness, as well as reducing the regulatory burden where appropriate.”

The actions NCUA took during the year “better positioned NCUA and credit unions to succeed in the future,” she touted.

Federally insured credit unions’ strong financial performance was attributed to improving economic conditions that led to strong loan, net worth and membership growth during 2014, said the report. Performance statistics for federally insured credit unions included:

  • Membership grew to 99.3 million, up from 96.3 million at the end of 2013;
  • Total assets rose by $60 billion, bringing credit union system total assets to $1.12 trillion;
  • Overall share and deposit accounts rose to $951 billion from $910 billion;
  • The net-worth ratio of credit unions was 10.97%, up 19 basis points (bp) from 10.78%. The year-end ratio was the highest level since 2007, said the report; and
  • Return on average assets ratio was 80 bp, up from 78 bp.

The agency focused on these nine categories during 2014:

  • Modernizing NCUA’s rules to account for emerging risks to the federally insured credit union system;
  • Revising and removing regulations that limit flexibility and growth, without jeopardizing safety and soundness;
  • Ensuring the safety and soundness of the system;
  • Managing the resolution of the corporate credit union crisis of 2008-2010;
  • Assisting credit unions so they can adapt and thrive in a changing environment;
  • Protecting consumers, expanding access to affordable financial services and advancing financial literacy;
  • Promoting transparency and developing strategic partnerships;
  • Making NCUA an employer of choice; and
  • Acting as a model corporate steward.

The report also assessed NCUA’s performance in meeting its strategic and agency priority goals and objective. The four goals addressed include:

  • Ensuring a safe, sound and sustainable credit union industry;
  • Promoting consumer protection and financial literacy;
  • Further developing a regulatory environment that is transparent and effective, with clearly articulated and easily understood regulations; and
  • Cultivating an environment fostering a diverse, well-trained and motivated staff.

The report, which is sent annually to the U.S. Congress, also provided the audited financial statements of each of NCUA’s four permanent funds, and included new data with a more detailed picture of the system’s financial performance for the past five years.