The total number of credit unions dropped by 50 in the second quarter.
Nationally, 97.6% of the industry met the NCUA’s 7.0% well-capitalized threshold.
Membership expanded 4.3%, the equivalent of 4.7 million new members.
There were 3,444 federally chartered and 2,152 state-chartered credit unions as of June 30, 2018. The total number of actively operating credit unions — 5,596 — was 50 fewer than as of March 31. On an annual basis, the number of institutions declined by 219, which is in line with recent consolidation trends.
Aggregate assets for the industry expanded 5.8%, or $79.5 billion, from the second quarter of 2017. Outstanding loan balances increased 9.7% year-over-year and surpassed $1.0 trillion for the first time on record. The average loan balance for the industry was $15,229 as of June 30; that’s up 4.1% from $14,624 one year ago. Investment and cash balances declined 3.8% year-over-year as credit unions allowed investments to roll-off to fund a continued robust loan demand that is fueled by elevated consumer confidence and a growing economy.
From a deposit perspective, total shares increased 5.4%, or $62.6 billion, annually. This is down from the 5.6% growth the industry recorded in the first quarter of the year and significantly lower than the 8.1% growth recorded one year ago. As the economy churns along, consumers are increasingly shirking savings products and opting for higher yielding returns in the stock market.