Insured shares and deposits in federally insured credit unions reached more than $1 trillion for the first time during the third quarter of 2016, the NCUA announced Monday.
Assets rose 8.2% for the year ending in the third quarter, reaching $1.28 trillion.
Credit unions with assets of $500 million or more led the system in most performance measures, continuing a long-term trend
Total loans outstanding at federally insured credit unions increased 10.1% from one year earlier and reached $847.1 billion. Loans increased in every major category, led by new auto loans, which increased 15.8%, to $112.2 billion. Used auto loans rose 12.3%, to $178.1 billion.
Net member-business loan balances increased 14%, to $63.9 billion and payday alternative loans rose 9.5% to $129.5 million.
“By almost any measure, America’s credit unions as a whole continue to grow,” NCUA Board Chairman Rick Metsger said. “Rising credit union membership has boosted deposits, and loans have continued to grow at a double-digit pace.
He warned, however, that, “Despite these positive trends, federally insured credit unions must guard against risks on the horizon like rising interest rates and regional economic downturns, particularly in energy-producing states.”
The loans-to-share ratio at federally insured credit unions stood at 78.6%, an increase from 77.5% a year earlier.
Total investments by federally insured credit unions dropped 1.4% from the third quarter of 2015 and stood at $266.3 billion.
The delinquency rate dropped one basis point from last year and stood at 77 basis points during the third quarter. The delinquency rate for fixed real estate was 53 basis points, down from 65 basis points a year ago and the member business loan delinquency rate was 152 basis points, compared with 111 basis points a year ago.
Despite the health in the credit union system, the number of credit unions continued to drop during the third quarter of the year.
The number of credit unions fell to 5,844, down 246 from last year. About 70% of the decline occurred in credit unions with less than $10 million in assets.
A total of 2,459 federally insured credit unions carried a low-income designation, a 7.6% increase from last year.
