3Q10 Credit Union Successes

More than $3.0 billion in net income and the highest third quarter loan originations volume in five years are just two reasons to celebrate.

 

 

Credit union momentum remained strong in the third quarter of 2010. Through September, credit unions' quarterly loan originations jumped 16% from June, making this the strongest third quarter of originations in the past five years. Credit unions' net income also inreased nearly 80% over the previous year; the industry reported higher year-to-date earnings than it generated during all of 2008 or 2009.

Other Highlights at the end of September include:

  • Assets increased 3.8% over the past twelve months to $920.0B.
  • Credit unions originated $70 billion in loans during the third quarter of 2010, a 16% jump from originations reported in the second quarter and the highest third quarter volume in five years.
  • Credit unions are selling nearly half of their first mortgage originations to the secondary market for ALM management purposes. Secondary market sales through the third quarter totaled $27.8 billion.
  • Delinquency increased two basis points from June to 1.76% but is down from where credit unions ended 2009. As delinquency falls, the coverage ratio (Allowance for Loan Losses/Delinquent Loans) has increased to 93.2%.
  • Share balances increased 5.6% over the past 12 months, led by money market deposits. This increase in balances helped credit union deposit market share rise to a new high of 9.3%.
  • Total membership rose by 440,000 over the past 12 months to 92.0 million.
  • Net income is up 79.2% annually through the third quarter. The $3.0 billion in net income is the highest since 2007.
  • The net worth to assets ratio stands at 10.0% as of September; total capital tops $101.0 billion

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Dec. 2, 2010


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