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Credit unions add members

By Marcie Geffner ·
Tuesday, June 18, 2013
Posted: 9 am ET

Federally insured U.S. credit unions gained members, added assets and increased the number of loans outstanding during the 12 months ending March 31, 2013, according to the National Credit Union Administration, or NCUA.

Based in Alexandria, Va., NCUA is a federal agency that charters, regulates and supervises federal credit unions and operates and manages the federal credit union deposit insurance fund.

Here are the details of the NCUA's report.

• Credit union membership increased 2 percent during the 12-month period, bringing the national total to 94.6 million members.

• Total assets grew 5.4 percent, after a 6.7 percent rise in the previous 12-month period. Every state except Nevada showed asset growth, where assets dropped by 3.2 percent. The highest rate of growth was in Iowa, with a rate of 10.4 percent.

• The number of loans outstanding increased 4.9 percent, after a 2.2 percent rise in the previous 12-month period. Forty-nine states and territories showed loan growth. The fastest growth rates were 12.4 percent in Idaho and 12.2 percent in Oklahoma. The number of loans outstanding declined in four states and the Virgin Islands. The biggest decline was an 8.8 percent drop in Nevada. National loan delinquency rates dropped to 1 percent compared with 1.4 percent in the prior period. Annualized net charge-off rates also dropped to 0.61 percent compared with 0.78 percent in the prior period.

The findings were based on a NCUA quarterly review of state-level credit union data and other metrics.

In a separate statement, the Credit Union National Association,  or CUNA, a credit union trade association in Washington, D.C., noted that credit unions gained 800,000 net new members in the first quarter of 2013, according to NCUA data.

CUNA CEO Bill Cheney characterized that gain as "evidence of a real cultural shift."

"Not only do credit unions generally offer better rates and lower fees, they have powerful appeal in today’s environment," Cheney said. "Credit unions, as cooperatives owned by the people they serve, embody those traits, and consumers are flocking to them."

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