ALEXANDRIA, Va.–Total shares and deposits at federally insured credit unions grew past $1 trillion in the fourth quarter of 2015, according to new data released by NCUA.
The agency reported that overall, share and deposit accounts at federally insured credit unions increased $65.2 billion, or 6.9%, from the end of the fourth quarter of 2014.
“Year-end data show the credit union system remains sound and focused on providing affordable financial services,” NCUA Board Chairman Debbie Matz said in a statement. “Rising deposits indicate consumer confidence in the system, and credit unions are turning those deposits into loans that allow members to buy homes, cars and other goods. New loans also grew by 15.8% in 2015. As lending increased, credit unions’ exposure to long-term investments declined. Nevertheless, NCUA will continue to closely examine credit unions for interest rate risk.”
The year-end figures are based Call Report data submitted to and compiled by the agency for the quarter ending Dec. 31, 2015. Among the data released by NCUA:
- Total assets in federally insured credit unions rose to $1.2 trillion at the end of the fourth quarter of 2015, an increase of $82.2 billion, or 7.3%, from the end of 2014. As overall deposits rose, growth in share drafts was especially strong, increasing by 14.5%for the year.
- New auto loans grew to $100.1 billion, up 3.4% for the quarter and up 16.0% for the year.
- Total loans at federally insured credit unions reached $787 billion in the fourth quarter of 2015, an increase of 2.3% from the previous quarter and 10.5% from a year earlier.
- Used auto loans rose to $161.9 billion, up 2.1% for the quarter and up 12.7 for the year.
- Total first-mortgage loans outstanding reached $322.3 billion, up 2.1% for the quarter and up 10.3% for the year. Fixed-rate first mortgages made up 59% of first-mortgage loans at year’s end.
- Other mortgage loans stood at $74.4 billion, up 1.4% for the quarter and up 3.6% for the year.
- Net member-business loan balances grew to $58.1 billion, up 3.6% for the quarter and up 12.2% for the year.
- Non-federally guaranteed student loans stood at $3.5 billion, up 2.1% for the quarter and up 11.3% for the year.
According to NCUA, federal credit unions also originated $123.3 million in payday alternative loans over the four quarters ending in the fourth quarter of 2015, up 7.2% from the fourth quarter of 2014.
The loans-to-shares ratio at the end of the fourth quarter was 77.5%, unchanged from the previous quarter and up 2.5%age points from the end of the fourth quarter of 2014, NCUA said.
Investments & Ratios
Other data released by NCUA for year-end 2015 show:
- Total investments by federally insured credit unions stood at $272.8 billion at the end of the fourth quarter of 2015, a decrease of $3 billion, or 1.1%, from the end of 2014. Compared to a year earlier, investments with maturities greater than 10 years declined 20.6% to $4.5 billion. Investments with maturities of one to three years increased to $101.7 billion, up 2.2% from a year earlier.
- The credit union system’s net long-term assets ratio was 32.7% in the fourth quarter, compared to 33.6% a year ago. Credit unions with less than $10 million in assets had the lowest net long-term asset ratio of any peer group at 10.5%. In comparison, credit unions with more than $500 million in assets had a ratio of 34%.
- The percentage of federally insured credit unions that were well-capitalized rose over the past four quarters with 97.9% reporting a net worth ratio at or above the statutorily required 7%. A year earlier, 97.6% of credit unions were well-capitalized. As of Dec. 31, 2015, 0.6% of federally insured credit unions were undercapitalized.
- Membership in federally insured credit unions grew to 102.7 million at the end of 2015, an increase of 3.5 million from the end of the fourth quarter of 2014.
- The number of federally insured credit unions fell to 6,021 at the end of the fourth quarter, 252 fewer than at the end of 2014, a decline of 4%.
- Federally insured credit unions reported net income of $8.7 billion in 2015, an increase of 0.3% from 2014. The credit union system’s aggregate net worth ratio was 10.92% at the end of the fourth quarter, down 4 basis points from a year earlier.
NCUA reported that the delinquency rate at federally insured credit unions rose slightly in the fourth quarter to 81 basis points from 78 basis points the previous quarter, but remained below the 85 basis-point level in the fourth quarter of 2014. The year-to-date net charge-off ratio was 48 basis points for 2015, down from 50 basis points in 2014.
The percentage of year-to-date loan charge-offs due to bankruptcy in the fourth quarter was 17.2, which was 2.3 percentage points below the end of the fourth quarter of 2014.
Large & Small Division
Other data released by NCUA show:
- Federally insured credit unions’ year-to-date return on average assets ratio stood at 75 basis points at the end of 2015, five basis points below the level in the fourth quarter of 2014.
- Overall, 79% of federally insured credit unions reported positive returns on average assets for 2015, compared to 78% in 2014.
- Federally insured credit unions with more than $500 million in assets continued to lead growth in the system in most performance measures in the fourth quarter of 2015. With $867.5 billion in combined assets, these 481 credit unions held 72% of total system assets. Large credit unions again reported the fastest growth in loans, membership and net worth as well as the highest return on average assets.
- Continuing credit unions with assets of less than $10 million recorded positive loan and net worth growth. These credit unions also reported a higher net worth ratio than other peer groups, but membership in the smallest credit union asset grouping continued to decline.
Numbers Show CU Strength
NAFCU President and CEO Dan Berger said the numbers highlight the credit union industry’s solid fundamentals and importance to America’s economy.
“The year-end figures underscore the significance of credit unions’ dedication to their prudent business model,” said Berger. “For 2015, credit unions saw their highest percentage share growth since 2009, the strongest loan growth in a decade, and the highest rate of member growth in the last 30 years. These data show that more and more, Americans are recognizing the value of Main Street credit unions. Consumers are voting with their wallets to validate credit unions’ focus on serving the financial needs of their member-owners and keeping members’ interests as their priority.”