Complete data on all 7,325 credit unions shows the industry posted record net income of $6.5 billion, pre-assessment, at September 30, 2011. This resulted in a pre-NCUSIF assessment ROA of 0.92%, a healthy increase as the economy picks up steam heading into 2012. Post-assessment, earning rose 22 basis points to 0.66%.
Credit unions have expanded their loan portfolio in each quarter of 2011, although total balances are still down from September 2010. Originations are up 4.6% annually, surpassing $190 billion through September 30. Real estate loan balances are up, driven primarily by a 3.3% growth in first mortgage holdings. Extensive recapture campaigns and credit unions' willingness to work with borrowers across the entire economic spectrum led to a 4.2% in used auto loan balances, although credit unions are still struggling to capture their share of the new auto loan market.
Despite this increase in lending, liquidity remains at record highs due to 5.0% growth in shares. Government agency securities are the largest component of the industry’s investment portfolio, up almost 30% from one year ago. Retail credit unions also hold $46.2 billion in corporate credit union investments and cash accounts. Credit unions are also extending their maturities, with 53% of the portfolio in holdings with maturities of more than one year.
Download Callahan & Associates’ 3Q 2011 Quarterly Report and the Consolidated Credit Union Financial Statement below.