| Credit unions in the U.S. continued to grow in the third quarter and produce strong earnings.
Total assets in federally insured credit unions rose by $86 billion, or 6.8 percent, over the year ending in the third quarter of 2017, to $1.36 trillion. Net income totaled $10.5 billion at an annual rate in the third quarter of 2017, up $0.76 billion, or 7.8 percent, from the same period a year ago.
The net interest margin for federally insured credit unions was $39.5 billion in the third quarter of 2017, or 3 percent of average assets. That compares with $35.8 billion, or 2.9 percent of average assets, in the third quarter of 2016.
“The third-quarter data reveals the great benefits credit unions provide to their members, communities and the nation’s economy as a whole,” Daniel Berger, president and CEO of the National Association of Federally-Insured Credit Unions, said in a statement on results from the third quarter. “Credit unions continue to see growth because those in their communities see what a tremendous focus they place on delivering superior support and products to their members.”
Total loans outstanding increased $90 billion, or 10.6 percent, over the year to $937 billion.
- Real estate loans rose $41.5 billion, or 9.9 percent, over the year to $462.5 billion in the third quarter of 2017.
- Auto loans increased $36.0 billion, or 12.4 percent, to $326.3 billion. Used auto loans rose $20.0 billion, or 11.2 percent, to $198.0 billion. New auto loans rose $16.0 billion, or 14.3 percent, to $128.2 billion.
- Credit card balances rose $4.5 billion, or 9 percent, to $54.7 billion.
- Non-federally guaranteed student loans rose $0.5 billion, or 13.6 percent, to $4.3 billion.
- Commercial loans, including unfunded commitments, totaled $66.5 billion in the third quarter of 2017; data are unavailable for prior quarters. Commercial loans are not directly comparable to member business loans.
The number of federally insured credit unions declined to 5,642 in the third quarter of 2017 from 5,844 in the third quarter of 2016. In the third quarter of 2017, there were 3,536 federal credit unions and 2,106 federally insured, state-chartered credit unions. The year-over-year decline is consistent with long-running industry consolidation trends.
The number of credit unions with a low-income designation rose to 2,538 in the third quarter of 2017 from 2,459 one year earlier.
The delinquency rate at federally insured credit unions was 79 basis points in the third quarter of 2017, little changed from one year earlier. The net charge-off ratio was 56 basis points, up from 53 basis points in the third quarter of 2016.
