ALEXANDRIA, Va. – Lower cost of funds and growing loan income helped propel the nation’s biggest credit unions to huge third quarter gains, but the biggest stimulus may have been provided by NCUA in the lowest assessments in four years.
Among the credit unions headed for record years, in terms of net income and return-on-average assets are: ESL FCU (1.62% annualized ROA); DFCU Financial (1.56% annualized ROA); Wings Financial CU (1.38%); Randolph-Brooks FCU (1.35%); Coastal FCU (1.33%) and Navy FCU, the now $51.6 billion credit union which reported a whopping 1.45% annualized ROA for the first nine months of the year.
Many of these credit unions are reporting similar numbers as a year ago, the difference being the lower charges assessed by NCUA this year. That $1.2 billion difference between this year’s and last year’s corporate bailout assessment has gone straight to their bottom lines. This year’s NCUA’s 9.5 basis point corporate assessment, or $790.5 million, is the lowest NCUA has charged in either corporate assessments and/or NCUSIF premiums since the start of the financial crisis five years ago, providing a major boost the credit unions.
Credit unions all over the country—including this in the so-called Sand States--are reporting big numbers for the third quarter.
In California: Wescom Central CU reported a $23.7 million third quarter net; North Island Financial CU $11.1 million; Kern Schools FCU $10.4 million; Educational Employees FCU $23.7 million; SAFE CU $13.1 million; Patelco CU $43.2 million; Star One CU $43.4 million; First Tech FCU $43.6 million; and SchoolsFirst FCU $90.7 million.
In Florida: Suncoast Schools FCU a $43.6 million third quarter net; GTE Financial $6.8 million.
In Arizona: Desert Schools FCU a $38.6 million third quarter net; Arizona State CU $13.4 million.
In Nevada: One Nevada CU a $1.2 million net and Silver State Schools CU a $642,000 net for the third quarter.
Credit unions all around the country are reporting big numbers for the third quarters. Security Service FCU $45.2 million; Bethpage FCU $42.8 million; Lake Michigan CU $57.7 million; Alaska USA FCU $43.6 million; and Pentagon FCU $95.9 million.
Even troubled credit unions being run under conservatorship are reporting successful third quarters, like Texans CU, which reported a $17.7 million third quarter net after losing $88.7 million in 2011; Arrowhead Central CU, an $18.3 million third quarter net; and Arizona’s AEA FCU, a $1.6 million net for the third quarter.
