Iowa credit unions lend more money in second quarter

Iowa credit unions are ranked No. 3 nationally in loan growth

Iowa credit unions recorded a 9.7 percent year-over-year increase in lending during the second quarter, according to data released Wednesday by the National Credit Union Administration.

With the jump in lending, Iowa credit unions are ranked No. 3 nationally in loan growth. They are ranked No. 2 nationally in deposit growth with a 12.2 percent increase.

Iowa credit unions also are ranked No. 2  for asset growth with a 12.5 percent jump in the second quarter when compared with the same three-month period in 2011.

Slightly less than 1 percent of the loans at Iowa credit unions were delinquent at the end of the second quarter on June 30 and the annualized charge off rate for bad loans was 0.35 percent at the end of the quarter.

Nationally, credit unions recorded the largest quarterly increase in lending since 2008 in the three-month period that ended on June 30.

The NCUA said loans rose 1.7 percent, to $581.7 billion, in the second quarter from $572.0 billion in the quarter that ended on March 31. Loans for first mortgages increased by 1.7 percent, while new and used auto loans each rose by 2.8 percent.

Business lending increased by 1.2 percent, to $40.2 billion, from $39.7 billion. Short-term small loans, an alternative to payday loans,  grew by 23.9 percent, to $16.7 million.

Total loans by credit unions have increased for five consecutive quarters, according to NCUA.


Loans delinquent 90 days or more fell 24 basis points to 1.2 percent in the quarter. The decline was primarily due to implementation of a new NCUA rule that allows credit unions to modify loans without having to classify troubled debt restructurings as delinquent until the credit union receives payments over a six-month period.

The net charge-off ratio fell by three basis points during the quarter to 0.75 percent. New bankruptcy filings by members also declined.

Credit unions reported 58,386 members filing for bankruptcy in the second quarter, a 17.3 percent decrease from the quarter that ended on March 31.

Credit unions’ total assets grew by $5.9 billion in the second quarter to $1,007.6 billion from $1,001.8 billion in the quarter that ended on March 31. Total savings rose 0.3 percent to $868.8 billion from $866.0 billion in the first quarter.

Credit union net income climbed by 2.9 percent, to $2,138.1 million from $2,078.4 million in the first quarter.

There were 4,366 credit unions at the end of the second quarter, down 0.9 percent from 4,404 at the end of the previous quarter.



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