Q4: Income Up, Membership Down

Register now

ALEXANDRIA, Va.-Credit union net income was up 208% during Q4 2010, according to NCUA data released last week, although credit union membership actually declined during the quarter.

NCUA noted in its analysis that shares and deposits expanded in each quarter of 2010, whereas loans contracted 0.4% in the fourth quarter and 1.34% for the year. However, used automobile, credit card, and first mortgage loans remain popular.

Among the data for Q4 2010 released by the agency and based on the Call Reports submitted by the nation's 7,339 federally insured credit unions:

* Credit unions' 2010 return on average assets (ROA) grew to 0.51% during Q4, up from 0.45% in Q3 and 0.18% at year-end 2009.

* Operating expenses, including stabilization expenses, cost of funds, and provision for loan loss expenses, declined during the quarter.

* Overall credit union membership declined 0.3% during Q4, but total membership grew 0.68% to 90.5 million members during 2010.

* During 2010, assets increased 3.4% to $914.5 billion from $884.6 billion while loans declined 1.3% to $564.8 billion from $572.5 billion.

* Specifically, used vehicle loans expanded 3.43% during the year, and 0.2% during Q4. First mortgage real estate loans grew 2.69% during the year and 0.7% in Q4. Meanwhile, NCUA reported new vehicle loans declined 16.4% for the year and 4.1% for Q4. Unsecured credit card lending increased 3.1% for the year after declining 2.9% in the first quarter of 2010.

* Shares increased 4.55% to $786.5 billion from $752.7 billion during 2010.

* Investments increased 13.4% to $238.9 billion from $210.7 billion.

* Net income increased 208.3% during 2010 to $4.6 billion from $1.5 billion.

* Net worth increased during 5.2% to $92.1-billion from $87.6 billion one year earlier.

* Delinquencies remained high, ending 2010 at 1.74%, but the Q4 number is a 10BP improvement of Q4 2009.

* The dollar amount of net charge-offs declined 7.1% during 2010, lowering the net charge-off ratio to 1.13% in the third and fourth quarters, eight basis points below the year-end 2009 level of 1.21%.

* Some 334,041 member bankruptcies were reported during 2010, up from 323,733 during 2009.

For reprint and licensing requests for this article, click here.
MORE FROM AMERICAN BANKER