Improving Financial Conditions in Q1 2013

by Keith Leggett

The financial performance of federally-insured credit unions continued to improve in the first quarter of 2013, according to information released by the National Credit Union Administration (NCUA).

For the first quarter, federally insured credit unions had a net income of almost $2.2 billion.

The industry’s return on average assets ratio was a healthy 83 basis points — down 3 basis points from the prior quarter. However, the low interest rate environment continued to squeeze the net interest margins at credit unions, which fell by 16 basis points in the quarter to 2.77 percent.

Credit unions’ total assets grew by $33.6 billion in the first quarter to $1.06 trillion, while the industry’s net worth rose to $108.8 billion, up $2.1 billion for the quarter. Because asset growth outpaced net worth growth, credit unions’ net worth ratio fell slightly during the quarter to 10.31 percent.

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