Sept. 4, 2012 – Second-quarter call report data show that federally insured credit unions had the largest quarterly lending increase since 2008, reinforcing NAFCU’s view that consumers are continuing to find new ways to benefit from credit union membership.
NCUA reported Friday that total loans rose 1.7 percent to $581.7 billion in the second quarter, marking the fifth consecutive quarterly lending increase for federally insured credit unions.
Improvements were seen in almost every category. Loans for first mortgages were up 1.7 percent, new and used auto loans both increased 2.8 percent, and member business lending rose 1.2 percent to $40.2 billion, a $39.7 billion quarterly increase.
NAFCU President and CEO Fred Becker said that the growth in lending, especially member business lending, “underscores credit unions’ commitment to providing credit to small businesses.” He added that it is vital Congress passes S.2231, the Small Business Lending Enhancement Act, which would raise credit unions’ MBL cap from 12.25 percent of total assets to 27.5 percent if certain conditions are met. If enacted, "credit unions would be able to do even more to help our nation’s small businesses create jobs and help our economy.”
Other highlights from NCUA’s second-quarter report include:
- credit union membership was up 640,000 from the previous quarter and up by more than 2.1 million from the previous year;
- deposits (shares) grew by 0.3 percent to $868.8 billion, with the loan-to-share ratio increasing 0.9 percentage points from the first quarter;
- assets increased 0.6 percent to $1.01 trillion, up from $1 trillion; and
- net worth increased 2.1 percent to $102.4 billion, up from $100.3 billion.
NCUA Chairman Debbie Matz said the numbers “demonstrate that credit unions are playing an important role in efforts to create jobs, stimulate small businesses and revitalize communities.”
The 2Q call report can be viewed here.