March 4, 2013 – NCUA on Friday released data showing that credit unions crossed the $1 trillion asset threshold in 2012, set a new benchmark for net income and achieved robust growth in loans and membership.
NAFCU President and CEO Fred Becker said the numbers show that “credit unions continue to reap the rewards of consumer confidence through record earnings and membership growth as people continue to choose credit unions as their financial partner.”
Credit union assets grew $60 billion for the year, finishing 2012 at $1.02 trillion. Net income for 2012 reached $8.5 billion, a new high and a 36.1 percent increase from the previous year. NCUA said the net income increase came largely from reductions in loan loss reserves, a positive sign of improving economic conditions.
Credit union membership grew by more than 2 million people, rising from 91.8 million to 93.8 million. Loan growth was also strong – credit unions’ lending grew in nearly every category, and overall loan growth was up $26.3 billion from the previous year, a 4.6 percent increase.
NCUA Chairman Debbie Matz said the data show that 2012 was “a pivotal year” for credit unions. “The industry net worth ratio rose to 10.44 percent, and delinquencies fell again,” she said. “Credit union lending also grew by 4.6 percent, meaning more people got the loans needed to buy homes, purchase cars, and go to school.”
Becker also noted that, “The year-end data and record traffic to CULookUp.com, our credit union locator, prove that our nation’s Main Street credit unions—with their not-for-profit, member-focused business model—are the people's choice.” CULookUp.com continues to grow in popularity with traffic to the site increasing by 22 percent in 2012.
Other highlights from NCUA's data:
- Total loans increased to $597.7 billion in 2012; new business lending rose 6.5 percent over the previous year to $41.7 billion.
- Deposits (shares) grew 6.1 percent to $877.9 billion from the previous year (the loan-to-share ratio declined 1 percentage point).
- The $1.02 trillion asset total in 2012 represented a 6.2 percent increase from the previous year.