Credit unions experienced the highest loan growth since 2006 and total assets reached $1.1 trillion at the end of the third quarter, according to NCUA call report data for the third quarter ending Sept. 30.
Outstanding loan balances rose 10.1% from the third quarter of 2013 to $695.3 billion.
New auto loans grew 19.4% to $82.4 billion while used auto loans rose 12.2% to $140.3 billion.
Net member business loan balances increased 12.6% to $50.4 billion and non-federally guaranteed student loans jumped 21.9% to $3.1 billion.
First mortgage real estate loans rose 9.1% from the prior year to $286.4 billion.
NCUA Chairman Debbie Matz said the record loan growth is no surprise.
"An improving economy stimulates loan demand, and lending growth contributes to continued economic growth. So, it comes as no surprise that the credit union system grew with and boosted the economy in the third quarter," Matz said.
She added, "The fact that credit unions are turning towards making loans and reducing their reliance on long-term investments is encouraging. A loan to a member is the best investment a credit union can make and benefits members directly. To protect the safety and soundness of the credit union system, NCUA will continue to carefully monitor signs of interest-rate risk.
Meanwhile, total investments declined 1.7% or$5.1 billion from the third quarter of 2013, the NCUA said.
Membership in federally insured credit unions went up by 808,900 in the third quarter of 2014 to 98.7 million.The amount of federally insured credit unions fell by 270 or 4.1% to 6,350 at the end of the third quarter compared to the prior year.
Federally insured credit unions' return on average assets increased slightly from the third quarter of 2013 to an annualized 83 basis points.
Net income in the third quarter of this year hit $6.8 billion, marking an increase of 8.6% from the previous year. Interest income increased $484 million from a year earlier to $9.3 billion through Sept. 30.
The net worth ratio for federally insured credit unions at the end of the second quarter of 2014 was 28 basis points higher than the end of the third quarter of 2013.
The NCUA said credit unions remain well-capitalized overall with less than 1% below the current adequately capitalized standard.
Total assets grew 4.8% from the third quarter of 2013 to $1.1 trillion.
"Overall, share and deposit accounts declined slightly from the previous quarter to $939.1 billion—possibly reflecting seasonal factors—but were 3.7 % higher than the $906 billion at the end of the third quarter of 2013. Share drafts and regular shares each were up 7.3 % from a year ago. All other deposits were up 0.7 %," the NCUA reported.
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