MADISON, Wis.-Calling it a "hopeful sign" for the economy, analysis released by CUNA shows that credit unions' savings growth increased to 10.2% during the third quarter.
On the other side of the ledger, loan growth for the quarter slid to 2.7% from 6.7% in 2008, which CUNA's economists called "typical for an economic downturn.
Delinquencies and net charge-offs, meanwhile, increased but remained substantially lower than what banks are experiencing, according to CUNA. ROA was at 26%, up from -0.2% in 2008 and 64% in 2007.
Other findings for Q3, as released by CUNA:
• The aggregate loan-to-savings ratio at credit unions decreased to 78.1% from 83.2% in 2008. "That means there is more liquidity, but ROA pressure remains as credit unions' low-yielding investments grow," CUNA said in a statement.
• Interest-rate-risk exposure declined to 34.6% from 2008's 35.2%, with CUNA citing increased mortgage loan sales as a major factor in the decline.
• Net worth ratios declined to 10.1 % from 10.6% in Q3 2008 as the result of fast asset growth and low earnings. CUNA reported the liquid asset ratio increased to 16.3% as of June, from 14.7% last year.
• Stable low-cost deposits were flat at 36.2% but that figure is substantially lower than in 2005.
• Most credit unions remain well-capitalized, with 95.8% maintaining a net worth greater than 7%, according to CUNA.
• Asset yields were down by 62 basis points (BP) from 2008, but interest costs declined by 64 BPs.
• Membership growth inched up over the 12 months ended Sept. 30, now putting it at "double the rate of population growth," CUNA said.
• Net interest margins increased just a tad to 316 BPs, with noninterest income up to 178 BPs from 128 in 2008.
• CU borrower-bankruptcy rates rose to 3.7 per 1,000 credit union members from 2.6 last year.
• CUNA's data shows that as of Sept. 30 there were 7,773 credit unions, with an average asset size of $114 million and median assets of $16.1 million. Total CU assets were nearly $885.9 billion. Total loans were $585.1 billion and total savings were more than $748.8 billion. Members totaled 91.3 million. Total surplus funds in the movement was nearly $268.2 billion, CUNA reported.
