Loan growth at federally insured credit unions in 2014 reached its highest level since 2005 and membership growth continued, according to NCUA data from the fourth quarter of 2014.

Outstanding loan balances grew 10.4% between the end of 2013 and the end of 2014, while total loans reached $712.3 billion, according to data released on Monday.

Loans grew in almost every major category, including auto loans, first mortgage loans and payday alternative loans.

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Credit unions added 551,000 members in the fourth quarter of the year and 3 million members overall in 2014. The NCUA said federally insured credit union membership reached a new high of 99.3 million in the year ending Dec. 31, 2014.

Long-term investments declined during 2014 while investments with maturities between one and three years increased. Total investments dropped 3.5% compared to 2013 figures, to $276 billion. In 2014, investments with maturities greater than 10 years decreased 21.6% to $5.6 billion.

The number of federally insured credit unions dropped by 77 to 6,273 at the end of the fourth quarter of 2014, representing a decline of 1.2% in the quarter and 4.3% for the year. According to the NCUA, the drop is consistent with longstanding trends in the financial services industry.

The return on average assets ratio increased slightly at the end of 2014 above 2013 levels to 80 basis points.

Net income stood at $8.8 billion in the fourth quarter of 2014, increasing by 8% or $648 million from the fourth quarter of 2013. At the end of the fourth quarter, the aggregate net worth ratio was at its highest since the third quarter of 2008 at 10.97%.

The NCUA reported that 97.2% of credit unions were well capitalized at the end of the fourth quarter of 2013 compared to 97.7% at the end of the fourth quarter 2014, representing a slight increase.

Total assets reached $1.12 trillion in 2014, growing by $60 billion, or 5.7%. Share and deposit accounts at federally insured credit unions increased $11.7 billion in the fourth quarter to $951 billion, compared to $910 billion at the end of the fourth quarter of 2013.

Delinquency and net charge-off ratios for federally insured credit unions improved since the end of 2013. The delinquency ratio fell to 0.85% in 2014 from 1.01% at the end of 2013 and the net charge-off ratio declined 7 basis points from the end of 2013 to 49 basis points year-to-date.

The NCUA reported that the percentage of loan charge-offs due to bankruptcy in 2014 as 19.3%, which was 112 basis points lower than the end of the fourth quarter of 2013.

NCUA Board Chairman Debbie Matz called 2014 a "very productive year" for America's credit unions.

"As economic growth stimulated loan demand, credit union loans met the needs of millions of members, strengthened their communities and created jobs that will further boost the economy," she said. "Loan growth also helped credit unions reduce reliance on long-term investments to generate income. However, credit unions must remain prepared when interest rates rise."

Federally insured credit unions with more than $500 million in assets had $781 billion in combined assets, representing almost 70% of all total assets at the end of the year. According to NCUA data, these 450 credit unions reported a higher return on average assets than credit unions overall. Credit unions with assets less than $10 million improved performance as well.

"Credit unions with assets of less than $10 million recorded higher net worth ratios and higher loan growth than they reported in 2013," the NCUA said. "These credit unions rebounded from the end of 2013 in return on average assets but saw membership decline."

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