Membership at the nation’s credit unions is surging. The growth is outpacing the sector’s ability to lend.
First mortgage assets at federally insured credit unions grew during the third quarter, albeit at a slower pace, the National Credit Union Administration reported today. First mortgage and home-equity line-of-credit holdings grew 4.1 percent in the first nine months of 2009.
Total assets stood at $874.0 billion as of the end of September, up 8 percent from yearend 2008. Included in the Sept. 30 figure was $575.5 billion in loan assets.
Delinquency on all types of credit union loans was 1.68 percent as of Sept. 30. A year earlier, the rate was 1.37 percent.
“These numbers buttress the case for increased regulatory oversight as credit unions deal with adverse economic conditions,” NCUA Chairman Debbie Matz said in the report. “While credit union net worth remains strong at 10.05 percent, and evidences a slight 2 basis point gain above the mid-year level, the overall environment for financial institutions and consumers remains challenging.”
Membership at the nation’s 7,637 federally insured credit unions ended the third quarter at 90.3 million, increasing from 88.6 million at the end of the second quarter.
“Because share growth significantly outpaced loan growth, the loan-to-share ratio declined to 77.9 percent from 83.1 percent during the year,” the statement said.
