Credit union profits up 8 percent for 2014
by: Keith Leggett
The National Credit Union Administration (NCUA) reported that credit union profits were up 8 percent for 2014 to $8.8 billion.
The return on average assets ratio stood at 80 basis points at the end of 2014, up two basis points higher than at the end of 2013. NCUA noted that higher net interest margins, lower operating expenses, and slightly higher non-operating income as a percent of average assets positively contributed to return on average assets. However, lower fee and other income and higher provisions for loan and lease losses as a percent of average assets negatively impacted return on average assets.
Outstanding loan balances at federally insured credit unions grew 10.4 percent between the end of 2013 and the end of 2014 reaching $712.3 billion. This was the largest year-over-year percentage increase since the end of 2005. NCUA reported all major loan categories saw an increase.
Overall, share and deposit accounts at federally insured credit unions were $951 billion at the end of 2014, compared to $910 billion at the end of the fourth quarter of 2013.
As a result of loans growing at a faster pace than shares, the loan-to-share ratio rose to 74.9 percent, the highest level since the end of 2009
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