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Credit Unions See Widespread Growth

Credit unions are growing—both in membership and in deposits, according to recent data from the National Credit Union Administration (NCUA).

NCUA’s Q4 2016 data, released this morning, shows deposits up 7.5 percent over the year, up to $1.09 trillion. Membership was also up for the year, jumping 4.1 percent from Q4 2015. Total membership in federally insured credit unions is now up to 106.9 million.

Total credit union lending and member business lending both increased as well, jumping 10.4 percent (to $869.1 billion) and 14.3 percent (up $62.4 billion) respectively. Total lending was just $787 billion in 2015.

Real estate loans, in particular, saw growth amongst credit union lenders. They rose 8.6 percent over the year, totaling $431.1 billion for the quarter. Auto loans rose 14 percent, and student loans increased by 9 percent.

Other important statistics noted in NCUA’s data report include:

  • Total credit union assets rose 7.3 percent, up to $1.29 trillion from 2015’s $1.2 trillion.
  • The industry’s loan-to-share ratio rose to 79.5 percent, a jump of 2.1 percentage points over the year.
  • Net income grew 10.6 percent, reaching $9.6 billion for the entire year—a $0.9 billion-dollar jump over 2015.
  • Delinquency across credit unions remained steady at 83 basis points—just 2 points above 2015’s Q4 numbers.
  • The net charge-off ratio rose from 48 basis points to 55.
  • The return on average assets was 77 basis points, up 2 points from 2015.
  • Credit unions designated as low-income rose from 2,297 to 2,491.

According to Dan Berger, President and CEO of the National Association of Federally Insured Credit Unions, the NCUA’s data proves credit unions are doing their job right.

“The year-end figures demonstrate credit unions’ solid commitment to providing excellent products and services to their members,” Berger said. “This data shows credit unions are maintaining healthy growth by doing what they do better than any other providers: focusing on the financial needs of their member-owners and keeping members’ interests as their top concern.”

One of the few statistics to decline, according to the NCUA’s data, was the number of federally insured credit unions, which dropped from 6,021 to 5,785 year-over-year.

To view the full data report, visit NCUA.gov.

About Author: Staff Writer


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