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U.S. CU Profile for third quarter 2009 now online
MADISON, Wis. (12/16/09)--With a hopeful sign in the economy's third-quarter rebound, credit unions' savings growth increased to 10.2%, according to a third quarter 2009 summary of credit union results compiled by the Credit Union National Association. The U.S. Credit Union Profile for the quarter is now available online.
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Loan growth for the quarter eased to 2.7% from 6.7% in 2008--which is typical for an economic downturn, said the profile, which is prepared by CUNA Economics and Statistics. Delinquencies and net chargeoffs increased but both remained substantially lower than bank norms, said the profile. Earnings pressures remain obvious, with the return on average assets (ROA) at 26%, compared with -0.2% in 2008 and 64% in 2007. The aggregate loan-to-savings ratio at credit unions decreased to 78.1% from 83.2% in 2008. That means there is more liquidity, but ROA pressure remains as credit unions' low-yielding investments grow. Interest-rate-risk exposure declined to 34.6% from 2008's 35.2% . Increased mortgage loan sales are a major factor in the decline, said CUNA. Third quarter net worth ratios declined to 10.1 % from 10.6% in 2008 due to the combination of fast asset growth and low earnings, CUNA said. The liquid asset ratio increased to 16.3% as of June, from 14.7% last year. Stable low-cost deposits held steady at 36.2% but are substantially lower than in 2005. Nearly all credit unions remain well-capitalized, with 95.8% maintaining a net worth greater than 7%, the report said. Asset yields decreased 62 basis points (bp) from 2008, but interest costs declined by 64 bp. Credit union margins were nearly equal to expense ratios, largely to fast asset growth and stabilization accounting. Membership growth inched up, with the 12-month member growth now double the rate of population growth. Net interest margins increased marginally to 316 bp. Noninterest income rose to 178 bp from 128 in 2008. Credit union borrower-bankruptcy rates rose to 3.7 per 1,000 credit union members from 2.6 last year. The profile includes overviews of mortgage lending, consumer lending, share/deposits, and more. In September, 7,773 credit unions averaged $114 million in assets with the median assets at $16.1 million. The movement had total assets of nearly $885.9 billion. Total loans were $585.1 billion and total savings were more than $748.8 billion. Members totaled 91.3 million. Total surplus funds in the movement was nearly $268.2 billion. Use the resource link to access the full report.
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