ALEXANDRIA, Va. - (05/26/06) -- Profitability at America's creditunions declined again in the first quarter, for the third quarterin a row, to just 0.81% return-on-average assets, the lowest inmore than a decade, as the flattening yield curve continued tosqueeze profits. That compares to an ROA of 0.85% for the fourthquarter in 2005, 0.92% for the third quarter, and 0.93% for thethird and second quarters. Data compiled by NCUA shows that loangrowth for the first quarter was a tepid 0.9%, while share growthwas strong at 3%. Asset quality remained strong, with the loandelinquency ratio declining to just 0.59%, from 0.73% at year-end2005; and the charge-off ratio falling to a low 0.49%. Real estatelending continued to lead the way for loan growth, with firstmortgages increasing by 2.2% and other mortgages, which includessecond mortgages and home equity loans, rising by 2.7%. New autoloans grew by 0.9% in the first quarter, while used auto loansdeclined by 0.4%.
-
As AI and digital assets become mainstream, banks are spotting new opportunities to integrate payments with other activities.
July 4 -
House Republicans overcame internal divisions to narrowly pass President Trump's tax and spending package Thursday afternoon. The measure would cut the Consumer Financial Protection Bureau's funding level, among other provisions.
July 3 -
A new partnership with Google Cloud will let the Spanish bank offer Gemini to all staff after a successful ChatGPT deployment.
July 3 -
Atlanta-based CoastalSouth's initial public offering prices at $21.50 a share; Valley National Bancorp announces Lyndsey Sloan will succeed Gary Michael as general counsel; Webster Financial Corporation taps a new chief risk officer and appoints a new board member; and more in this week's banking news roundup.
July 3 -
Capital One closed the deal to buy the credit card provider in May and as part of the review process, decided to exit its home equity lending business.
July 3 -
In a rare move for a credit union, the Seattle institution has snapped up the 13-member team that created EarnUp's AI Advisor product.
July 3