SACRAMENTO, Calif. (1/6/12)--Federally insured California credit unions had a strong third quarter last year, with their assets increasing by $4.7 billion, or a 5.2% annualized rate, from Dec. 31, 2010.
Assets of federally insured California credit unions total $125.9 billion--which is 13.2% of the credit union industry, according to a report released to News Now
by certified public accountants Richards & Associates.
Other third-quarter financial results for the state's federally insured credit unions are:
- Net worth increased by an annualized rate of 9.04%. The net worth-to-assets ratio rose by 30 basis points to 9.95%.
- Operating costs as a percentage of assets climbed to 3.01% from 2.84%.
- Earnings, or return on assets, went up to 0.7% from 0.4% annualized. In the quarter, California credit unions paid $250.3 million in National Credit Union Share Insurance Fund premiums and Temporary Corporate Credit Union Stabilization expense--which consumed 29% of year-to-date earnings.
- Loans decreased by 2.4% (annualized) to $1.27 billion. The loan-to share ratio declined to 63.6% from 67.5%, with all loan categories seeing a decline. Since the end of 2010, California credit unions decreased their allowance for loan losses by $223.8 million, or 10.7%.
- Delinquent loans as a percentage of total loans dropped to 2.1% from 2.5%. However, overall loan delinquency continued to increase in the 12 months-and-over category, which could be an indication of delayed-loss recognition, said the accounting firm.
- Net loan charge-offs to average loans fell to 1.34% from 1.77%. Loan losses peaked in 2009 and have gradually decreased since then.
- Shares increased by $4.33 billion, or 5.6%. Core deposits--regular shares and share drafts--constituted 100% of all share growth. Declines occurred in nonmember deposits and share certificates.
- Current members increased by 105,186--or 1.51% annualized. There are 9,396,614 members of federally insured credit unions based in California. That represents 10.2% of the industry, said the firm.
There are 423 credit unions based in California, with 410 federally insured and 13 privately insured through American Share Insurance. The state's federally insured credit unions operate out of 1,642 branches with 22,762 full-time employees and 2,573 part-time employees.