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Credit Unions Reel in Over $1 Trillion in Assets for Q4

moneyCredit unions performed extremely well in the fourth quarter of 2015, with the highest share growth since 2009, strongest loan growth in 10 years, and the highest rate of member growth in 30 years.

The National Credit Union Administration (NCUA) reported Thursday that federally insured overall credit unions' shares and deposits increased $65.2 billion, or 6.9 percent, from the fourth quarter of 2014.

Total assets at credit unions rose to $1.2 trillion at the end of the fourth quarter of 2015, up $82.2 billion, or 7.3 percent, from the end of 2014. In addition, shares increased 14.5 percent for the year, NCUA reported.

Net income among credit unions rose 0.3 percent from 2014 to $8.7 billion in 2015, while the aggregate net worth ratio was 10.92 percent at the end of the fourth quarter, down 4 basis points from a year earlier, NCUA said.

“Year-end data show the credit union system remains sound and focused on providing affordable financial services,” said NCUA Board Chairman Debbie Matz. “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 percent 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.”

Imagdepicting ratios and growth ratesAccording to NCUA, first-mortgage loans outstanding reached $322.3 billion, up 2.1 percent for the quarter and up 10.3 percent for the year, and fixed-rate first mortgages made up 59 percent of first-mortgage loans at the end of 2015.

Other mortgage loans totaled $74.4 billion, up 1.4 percent for the fourth quarter and up 3.6 percent for the full year.

Membership numbers grew 3.5 million from the fourth quarter of 2015 to 102.7 million at the end of 2015 among credit unions.

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 percent, the report stated.

“The year-end figures underscore the significance of credit unions’ dedication  to their prudent business model,” said National Association of Federal Credit Unions President and CEO Dan 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."

He continued, “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.”

Click here to view the full report.

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