WEST PALM BEACH, Fla. - Three years' worth of data from NCUA's 5300 call reports and collected by Massachusetts Credit Union Share Insurance Crop. comparing federal credit unions and state-chartered credit unions in key areas shows that despite occasional spikes on the radar screen, both federal and state-chartered credit unions continue to grow in number of members and in the size of their loan portfolios. In addition, credit unions' return-on-assets continues to increase and their net worth dipped slightly first quarter 2005 from fourth quarter 2004. The proportion of federal and state-chartered CUs remained almost unchanged from March 2003-Dec. 2004 - usually about 59% FCUs and 41% SCCUs - despite the conversion of several Utah state-chartered credit unions to federal charters such as Mountain America, America First and Deseret First. The most noticeable shift was from Dec. 2004- March 2005 when the numbers shifted to 57.8% and 42.1%, FCUs to SCUs, possibly reflecting the decline in the overall number of credit unions due to mergers. Both federal and state-chartered credit unions' loan portfolios remain strong in auto, credit card, real estate and member business lending. Not surprisingly, coming off of the strong refi boom last year, continuing low interest rates and rising home prices, real estate lending for all credit unions grew as a percentage of total loan portfolio. In addition, as an increasing number of credit unions get involved in member business lending, that product has also increased as a portion of CUs' total loan portfolio. As of the end of the first quarter 2005, MBLs made up 5.02% and 2.42% of FCUs' and SCCUs' loan portfolios, respectively. In its March 2005 Letter to Credit Unions No. 05-CU-04 concerning "Financial Trends in Federally Insured Credit Unions January 1-December 31, 2004", NCUA wrote that, "The 2004 performance in lending, delinquency and overall net worth accumulation reflects the strength of credit unions while a decline in the net interest margin indicates the challenges credit unions face." -

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