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Credit Unions Report Strong Mid-Year Growth

Loans Expand as Delinquencies Decline at Federally Insured Credit Unions

Alexandria, Va., August 17, 2005 – The nation’s federally insured credit unions report strong 9.8 percent annualized loan growth while delinquent loans reflect a downward trend in the first six months of 2005 according to mid-year 2005 Call Report data submitted by the nation’s 8,871 federally insured credit unions.

“I am pleased to report the loan to share ratio climbed to 75.9 percent, the highest level since December 2000, and loan delinquencies declined to 0.65 percent in the first six months of 2005,” National Credit Union Administration (NCUA) Chairman JoAnn Johnson said. “Earnings remain strong with credit unions reporting an annualized 0.93 percent return on average assets at mid-year. These figures highlight the overall safe and sound condition of America’s credit unions in a growing economy. Also, it reflects well of credit union members’ confidence in their institutions.”

The major balance sheet categories and membership growth at federally insured credit unions in the six month period between January 1 and June 30, 2005 follows:

• Assets increased 3.5 percent, to $669.7 billion from $647.0 billion;
• Loans increased 4.9 percent, to $434.5 billion from $414.2 billion;
• Shares increased 2.9 percent, to $572.3 billion from $556.1 billion;
• Investments increased 1.5 percent, to $162.1 billion from $159.7 billion;
• Net worth increased 4.3 percent, to $73.9 billion from $70.9 billion; and
• Membership increased 1.1 percent, to 84.5 million members.

Examining specifics, real estate continues to lead expansion among income producing loans. First mortgage loans grew 5.4 percent to $137.1 billion, while other real estate loans, such as second mortgage and home equity loans, grew 8.7 percent increasing to $67.3 billion.

Vehicle loans continue to track well. New auto loans grew 7.4 percent to $76.5 billion, while used auto loans grew 2.6 percent to $86.9 billion.

The total amount of delinquent loans declined 5.8 percent and the amount of delinquent credit cards declined 9.9 percent.

Examining members’ savings, with the Federal Reserve increasing interest rates, in the first six months of 2005 federally insured credit union money market shares declined 1.8 percent and share certificates grew 8.7 percent as members moved funds into share certificates. Regular shares increased 1.5 percent to $203.1 billion, and IRA/Keogh accounts increased 2.4 percent to $47.8 billion.

A consolidated balance sheet, with additional details, is available on the NCUA website at http://www.ncua.gov/data/FOIA/foia.html

The National Credit Union Administration charters and supervises federal credit unions. NCUA, with the backing of the full faith and credit of the U.S. government, operates and manages the National Credit Union Share Insurance Fund, insuring the accounts of 84.5 million account holders in all federal credit unions and the majority of state-chartered credit unions.