Credit unions reported better income and stronger lending in the second quarter of this year, according to NCUA.

Citing credit union call reports, NCUA said net worth ratios “bounced back” and that return on average assets continued rose along with net income. The aggregate net worth ratio increased from 9.97% last quarter to 10.14% this quarter, the agency said, citing “relatively static operating expenses and provision for loan losses,” as part of the reason.

“The second quarter financials demonstrate the continued resilience of the credit union industry,” NCUA Board Chairman Debbie Matz said. “Specifically, I am pleased to see that net income has risen significantly since 2010, and that lending has grown for the first time in four quarters. NCUA's 2010 rule providing for short-term or payday loan alternatives has contributed to the recent growth. In the latest quarter, credit unions made 52 percent more of these alternative short-term loans,” she added.

Specific data included that net income increased 10.7% from last quarter, totaling $3.58 billion for 2011 to date; net worth increased 2.0% this quarter to $95.6 billion from $93.7 billion; assets increased 0.3% to $942.5 billion from $939.3 billion; shares increased 0.1% to $812.2 billion from $811.7 billion; investments, not including cash on deposit or cash equivalents, increased 0.8% in the second quarter to $255.8 billion from $253.7 billion; and loans rose 0.7% to $564.0 billion from $559.9 billion.