As credit unions look to close out 2011 on a positive note, they encounter an improving economic environment and increased anti-bank sentiment, according to statistics compiled by Callahan & Associates. Despite increased economic uncertainty, credit union financial performance has continued to improve. The Callahan & Associates report showed a number of areas where NC credit unions have created success in their marketplaces. Credit unions in North Carolina posted strong financial performance, exceeding most national trends. One example is that North Carolina credit unions posted an increase in year-to-date loan originations of 9.4% over year-to-date levels in September 2010, while credit unions nationally had year-to-date loan originations increase 4.6% from the same time last year.
Key Takeaways for North Carolina Credit Unions:
- Annual growth for assets, shares, members, and loans exceed the national averages as of September. With continued growth, the average member relationship (the outstanding combined loan and share balances per member, excluding member business loans) for North Carolina credit unions under $10 billion also increased to $10,396 as of September 30.
- Credit unions in North Carolina saw share balances increasing at a faster rate than the national average fueled by growth in core deposits, including a double-digit increase in regular shares.
- Delinquency at North Carolina’s credit unions increased in September 2011 over September 2010 levels, though indicators suggest credit unions are continuing to hold onto members’ loans and assist them with their debt burdens rather than writing the loans off.
- Return on assets for North Carolina credit unions remained well above the national average at 86 basis points thru September.
- Capital levels remain sound at North Carolina credit unions at 9.1% of assets. This is a higher level than North Carolina commercial banks.
To download the complete Quarterly Performance Summary, please click here.