Top 100 Credit Unions Add One Million New Members

The 100 largest credit unions posted strong financial performance and solid growth through June 2005 while distributing $1.9 billion in dividends to members in the first six months of the year.

 
 

The 100 largest credit unions have attracted over one million new members since June 2004 and have returned over 29 percent of total income via dividend payments through the first six months of 2005. These credit union leaders now serve over 21 million members, representing nearly 25 percent of total credit union membership.

The top 100 list continues to be led by Navy FCU, which crossed the $25 billion asset mark in the second quarter. Total assets of the group rose 8.9 percent over the past 12 months to reach $228.7 billion. Loans drove the asset growth as the real estate and auto loan portfolios posted double-digit increases of 15.9 percent and 11.6 percent, respectively. Real estate loans represent 52.8 percent of the top 100’s $152.7 billion loan portfolio, including $57.6 billion in first mortgages.

Shares increased at a 7.4 percent rate, led by a 20.5 percent rise in certificate balances as members took advantage of the ability to lock in higher rates for an extended period. With share growth lagging loan growth, the loan to share ratio for the top 100 has moved up over four percentage points since June 2004 to reach 79.2 percent at midyear.

Loan growth and rising interest rates helped revenue rise 12.8 percent versus the first six months of last year among the top 100. Interest income from loans rose 10.8 percent although loan yields declined 15 basis points to 5.70 percent. The yield on the investment portfolio moved up 55 basis points to 3.0 percent due to the increase in short-term rates over the past year.

The top 100’s return on assets of 1.10 percent through the first six months of the year is consistent with the group’s performance over the same period in 2004. The top 100 continues to post a solid bottom line while exceeding the industry average in dividend payment rates, both as a percentage of total income and in its 2.1 percent average cost of funds.

Chartway (VA), Truliant (NC), and two Pennsylvania credit unions, Citadel and Members 1 st, have moved into the top 100 since June 2004. Citadel FCU jumped into the group as a result of its merger with Atlantic Credit Union, a rare combination of two large credit unions. Members 1 st FCU has moved up 18 places in the asset rankings over the past year to #89, the second biggest move in the top 100 behind Citadel.

Below are other performance leaders from this group. For a complete list of the top 100 click here.

 Performance Category

Credit Union

ST

June 2005 Results

12-month share growth*

Digital

MA

18.2%

12-month loan growth*

Kinecta

CA

45.4%

12-month member growth*

GTE

FL

18.4%

Loans/shares

San Antonio

TX

138.9%

Return on assets

Texans

TX

2.4%

Net worth/assets

Bank-Fund Staff

DC

15.6%

*Excludes Citadel FCU

 

 

 

Aug. 22, 2005


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