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Credit Union Lending Expands

Alexandria, Va., November 22, 2006 – Credit union expansion continued through the third quarter of 2006. Lending increased, net worth increased and the number of members continued to grow according to Call Report data submitted by the nation’s 8,462 federally insured credit unions.

“While some categories of shares declined during the year, loan growth continued to expand illustrating the critical role credit unions play in providing affordable funding to their members,” Chairman JoAnn Johnson said. “Federally insured credit unions reported 1st mortgage real estate loans expanded 8.20 percent and other types of real estate loans grew 13.13 percent in the first nine months of 2006. This signals credit unions consistent effort to serve their members.”

Between January and September 30, 2006, activity indicates:

• Assets increased 3.28 percent to $700.9 billion from $678.7 billion;
• Loans increased 6.47 percent to $487.9 billion from $458.2 billion;
• Shares increased 2.77 percent to $593.6 billion from $577.6 billion;
• Investments declined 6.54 percent to $138.3 billion from $148.0 billion;
• Net worth to total assets increased to 11.52 percent from 11.24 percent; and
• Membership increased 1.56 percent to 85.8 million from 84.5 million members.

Lending grew across the board with the exception of loan leases. Combined, first mortgage and other types of real estate loans grew 9.86 percent through the third quarter of 2006.  New auto loans grew 4.9 percent while used auto loans grew 1.5 percent from January through September, and credit card lending grew 3.2 percent as other unsecured loans grew 3.9 percent. In addition, delinquent loans to total loans declined to 0.62 percent from 0.73 percent during the nine month period.

Reviewing various share accounts, all other savings, which includes certificate, money market, IRA, and all other member share accounts, expanded 9.52 percent to reach $337.3 billion. Among the major share categories, share certificates grew a significant 17.1 percent to $178.8 billion while regular shares, at $186.4 billion, declined 3.96 percent and share drafts, at $69.9 billion, declined 7.48 percent in the first nine months of 2006.

At the end of third quarter 2006, federally insured credit unions return on average assets increased to 0.88 percent from 0.85 percent at year-end 2005, and the loan to share ratio grew to 82.19 percent from 79.33 percent. This is the highest ratio since the Depository Institutions Deregulation and Monetary Control Act of 1980 was signed.

At September 30, 2006, the 8,462 federally insured credit unions were serving 85,828,435 members nationwide.

A one-page data summary is available online at http://www.ncua.gov/data/FOIA/2006/Sept/0609-Facts.xls, and detailed financial information is available online 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 over 85 million account holders in all federal credit unions and the majority of state-chartered credit unions.  NCUA is funded by credit unions, not federal tax dollars.