Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

Washington
NCUA Share growth surges in first quarter
ALEXANDRIA, Va. (5/27/08)--Federally insured credit unions reported significant share growth in the first three months of 2008, the National Credit Union Administration (NCUA) said Thursday. The data were taken from NCUA’s Call Report, which is based on data submitted by the nation’s 8,049 federally insured credit unions. Total shares increased 5.6%, for an annualized 22.4% in the first quarter. Every category of savings, except non-member deposits, grew by annualized double digits. Loan growth was 1.1%, or an annualized 4.5%. “The influx of shares in the first quarter illustrates that credit unions are providing their members with competitive savings products,” said NCUA Chairman JoAnn Johnson in a statement. “Federally insured credit unions reported a 4.8% increase in first-mortgage real estate loans in the first three months of 2008.” Net charge-offs increased to 0.67% from 0.50%, resulting in the loan delinquency ratio declining from 0.93% to 0.91%. The data indicate adverse real estate delinquency trends, Johnson said. But the trends are not indicative of systemic problems in the overall safety, soundness and stability of the credit union industry, she added. “(The trends) underscore the importance of proactivity, diligence and care in credit union underwriting and management of real estate loan portfolios,” Johnson said. Other findings from the report:
* Assets increased 5.1% to $792.2 billion from $753.4 billion; * Loans rose 1.1% to $532.8 billion from $526.9 billion; * Investments were up 8.5% to $154.6% from $142.5 billion; * Shares increased 5.6% to $667.7 billion from $632.4 billion; * Net worth went up 1.8 % to $87.7 billion from $86.2 billion; and * Membership rose 0.8% to 87.5 million members
In large lending categories:
* Total real estate loans increased 3.1% to $279.6 billion; * Used-auto loans increased 0.7% to $89.7 billion; * New-auto loans declined 3.2% to $84.1 billion; and * Unsecured credit card loans declined 1.2% to $29.7 billion.
With the exception of first-mortgage real estate loans, lending was curtailed during the quarter, and the influx of shares resulted in several investment categories expanding significantly, NCUA noted in its statement. Available-for-sale securities increased 16.9 % to $67.9 billion, and deposits in commercial banks, savings and loans, and savings banks grew 27.7% to $21.0 billion. Regarding share growth:
* Money market shares grew 7.9% to $119.9 billion; * Share drafts grew 6.9% to $75.8 billion; * Regular shares grew 5.1% to $177.6 billion; * Share certificates grew 4.6% to $226.1 billion; and * Individual retirement accounts and Keogh accounts were up 4.2% to $59.3 billion for the quarter.
The return on average assets ratio declined to 0.60% from 0.64% at year-end 2007 because of an increase in the provision for loan and lease losses expense from 0.44% to 0.55% as credit unions account for potential loan losses, the NCUA said. Details of first-quarter 2008 data are available in a consolidated balance sheet and a March 2008 Facts/Summary posted online. For more information, use the link.
Other Resources

RSS





print
News Now LiveWire
Registration lottery for #CreditUnion #CherryBlossom Ten Mile Run opens Monday, Dec. 1 http://t.co/AGkKPof5Fy. Race is April 12
1 Day ago
The turkey hasn't even been served and #creditunions are already making plans for #GivingTuesday
1 Day ago
.@bankofamerica's $16.65 billion 'toxic mortgage' settlement finalized http://t.co/BIq1QyImXG
33 minutes ago
RT @CUNA: #NussleReport: ICYMI: Revised RBC proposal in January w/a 90-day comment period #Fix RBC http://t.co/T4JcvWBDse
2 hours ago
.@TheNCUA release on Nov. prohibition orders out already. Here: http://t.co/YkA1QIYbYa
2 hours ago