WASHINGTON (11/30/12)--America's federally insured credit unions took in 742,847 new members in the third quarter of 2012, representing a quarterly growth rate of 0.8%, and these National Credit Union Administration-reported numbers show that "something remarkable is clearly happening," Credit Union National Association (CUNA) President/CEO Bill Cheney said.
The third-quarter membership increases brought the total number of federally insured credit union members nationwide to 93.9 million, the NCUA reported. The 742,847 gain is up from 643,322 net new members in the second quarter.
"Turned off by excessive fees and impersonal service--too often found at today's banks--consumers are turning to credit unions as a better, local and lower-cost alternative. It's great to see a year after Bank Transfer Day occurred, in November of 2011, that the number of new people joining credit unions continues to grow at such a sustained and increasingly strong pace," Cheney added.
"By CUNA estimates, U.S. consumers save $6.3 billion a year in better rates and lower fees by using member-owned, not-for-profit credit unions rather than banks for their financial services. The third quarter data show that people are responding in droves," he said.
The NCUA's third quarter data also showed:
- the overall number of federally insured credit unions declined to 6,888;
- net worth grew 2% to total $104.5 billion;
- credit union assets increased 0.5% to $1,012.9 billion;
- savings rose 0.1% to $869.7 billion; and
- credit union investments, cash on deposit, and cash equivalents declined by 2% to $378.7 billion.
Credit union loans outstanding also increased for the sixth-straight quarter. The total amount of increase was $9.4 billion, bringing the total number of loans held by credit unions to $591.1 billion as of the end of the quarter. New auto loans increased by 3.3%, used auto loans increased by 2.7%, and first-mortgage loans increased by 1.3% over the totals reported as of the second quarter. Non-federally insured student loans and leases receivable reported double-digit gains, the agency added.
Member business loans also increased by 1.5% during the third quarter, totaling $40.8 billion as of Sept. 30. The amount of payday alternative loan products provided by credit unions grew by 5.2%, totaling $17.3 million at the end of the quarter.
Credit union net income stood at $6.4 billion at the end of the third quarter, and this total exceeds credit union net income reported for all of 2011, according to the NCUA. Increases in fee income and other operating income coupled with declines in interest expenses and provisions for loan and lease losses resulted in $2.1 billion in third-quarter net income, the NCUA release added. The agency also reported that the credit union industry's return on average assets ratio stayed constant at 86 basis points for the quarter.
For the full NCUA release, use the resource link.