ALEXANDRIA, Va. (1/3/11)--For the first three quarters of 2010, the aggregate net worth of the credit union industry was up slightly to just less than 10% of total assets, and more than 94% of federally insured credit unions met the standard for the definition of being “well capitalized with net worth ratios of 7% or greater, according to figures released by the National Credit Union Administration (NCUA). The agency underscored that the overall financial condition of the credit union industry remained sound; even the return on average assets improved--reaching 0.45%. However, in its Letter to Credit Unions (10-CU-25), the agency stated clearly that financial stresses on credit unions remain, and it identified key trends and risks that the federal regulator will continue to supervise closely. For instance, in addition to credit and interest rate risk, the NCUA noted the affect the weak economy continues to have on many credit union members. “As their debts become overwhelming, members who experienced job losses and foreclosures are more likely to file for bankruptcy. The number of members filing for bankruptcy increased by one-third in the third quarter of 2010 and is on pace to exceed the total for 2009. During the first nine months of 2010, the percentage of loans charged off due to bankruptcy increased from 20.8% to 23.7%,” the letter noted. Use the resource link to view the complete letter.