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NCUA: Big credit unions continue to lead loans, members growth in Q4'17

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NCUA: Big credit unions continue to lead loans, members growth in Q4'17

The country's largest credit unions again saw the fastest loan and membership growth in the fourth quarter of 2017.

In the U.S., federally insured credit unions posted total assets of $1.38 trillion in the last quarter of 2017, up by $86 billion from the the previous year, according to a report from the National Credit Union Administration. Credit unions with more than $1 billion in assets held $875.6 billion in assets, or 64% of the total. These credit unions reported loan growth of 13.7%, membership increase of 9.0% and an 11.4% improvement in net worth.

Meanwhile, credit unions with less than $50 million in assets reported declines in loans, membership and net worth.

The credit union industry posted fourth-quarter 2017 net income of $10.4 billion, up $870 million from the previous year. Aggregate interest income rose by $4.9 billion over the year to $47.5 billion, and noninterest income increased by $700 million to $18.1 billion. Net interest margin widened to $39.9 billion from $36.0 billion. Provision for loan and lease losses reached $6.4 billion, up $1.3 billion year over year.

Total outstanding loans grew by $88 billion year over year to $957.3 billion, reflecting growths in real estate loans, auto loans, credit card balances and nonfederally guaranteed student loans. The delinquency rate at federally insured credit unions was 81 basis points in the fourth quarter of 2017, down from 83 bps a year ago. Loan performance improved in fixed real estate loans and auto loans, but the credit card delinquency rate increased to 129 bps from 114 bps.

Total investments fell by $7.2 billion to $261.9 billion. Declines were seen in investments with maturities of less than three years. Those with longer term maturities saw higher investments during the quarter.

Insured shares and deposits rose by $59 billion to $1.09 trillion. The credit union system's net worth increased by $10.3 billion to $151.1 billion.

Despite the year over year decline in the number of federally insured credit unions to 5,573 from 5,785, total membership increased by 4.5 million members to 111.3 million in the fourth quarter of 2017.