Record mortgage lending helped raise credit unions' profitability last year to its highest in six
Net income soared by 14% in 2002, pushing average return-on-average assets (ROA) for all credit unions to 1.07%,
At the same time, average cost of funds to assets plunged to just 2.29%, the lowest in decades, as credit unions
Still, funds kept pouring into the nation's credit unions, which reported another $47.1 billion in new shares-on top of
The data is based on year-end 5300 call reports submitted to NCUA by the nation's 9,688 federally insured credit
Bill Hampel, chief economist for CUNA, said he expects the funds to continue flowing into credit unions this year.
The flow of new funds diluted net capital ratios, but only slightly, to 10.7% from 10.8%, and lowered the average
Mortgage lending exploded for many credit unions taking advantage of the decades-low rates last year. First-
Used car loans grew a healthy 9% in 2002, while new car lending, hurt by auto finance companies 0% specials,
Member business lending, still just 2% of credit union portfolios, soared by 23% to $6.6 billion last year.
Total lending grew a healthy 6% for the year.
Member bankruptcies continued to take their toll on credit unions, as the amount of credit union loans subject to
Asset quality remained high, with the delinquency ratio dropping to just 0.80%, from 0.82% at year-end 2001; and
Memberships rose 2% last year to 81 million nationally, while field of membership, or potential members continue