Credit unions saw a jump in profitability in the second quarter of 2017, with net income and return on average assets both increasing. Net income reached $2.78 billion, the highest in eight years, representing an 11.8% increase year over year and an 18.1% increase since the first quarter.

Aggregate return on average assets was also up, reaching 0.82% in the second quarter. This represents an 11-basis-point increase from the first quarter of 2017, and a 3-basis-point increase year over year. Total reserves at $8.23 billion were up 2.4% from March 31 and up 8.2% from the year-ago period. As a percentage of gross loans, however, reserves were down slightly at credit unions, at 0.89%. This represents the lowest percentage of gross loans since Sept. 30, 2008, when the reserve ratio was 0.86%.

Washington, D.C.-based Transit Employees FCU was the most profitable credit union with over $100 million in assets for the second quarter of 2017. The company reported a ROAA of 4.16%, a 548-basis-point increase year over year. The company had a gain of $972,000 on disposition of fixed assets, which drove much of the profitability increase.

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