Data released on Monday by the National Credit Union Administration showed that America’s credit unions continued to see positive trends in membership, lending and net worth in the third quarter.
“Federally insured credit unions are on the right course,” NCUA Board Chairman Debbie Matz said. “The good news is we continue to see strong, positive trends in the industry. Credit unions are serving their members and investing in their communities by making the loans needed to purchase homes, buy cars and go to college. That said, smaller credit unions still face challenges in growing loan volume, generating earnings and attracting members, so NCUA must continue to provide them with needed assistance, training and support.”
Lending rose 2.9 percent to $631.5 billion in the third quarter, outpacing the second quarter. New auto loans increased four percent from the second quarter, while used auto loans improved 3.1 percent. First mortgage loans rose 3.3 percent to $262.3 billion, and non-member business loan balances rose 2.5 percent from the second quarter.
Investments fell slightly as a share of assets, though part of the investments going into longer-term instruments rose. The share of assets in investments with maturities of three years or more rose to 11.9 percent, compared to 9.4 percent in the third quarter of 2012.
Membership at credit unions reached a record 95.9 million in the third quarter—a 0.8 percent increase, though the number of credit unions declined by 61 as a result of recent mergers and conversions.
Credit unions with over $500 million—which hold $708 billion, or 67 percent, of the industry’s assets—led the industry in most performance measures.