Press
Minnesota credit unions experience continued growth and consumer confidence in Q3
ST. PAUL, MN (November 4, 2013) — Minnesota credit unions experienced growth in many leading indicators in the third quarter, a trend that has continued in the years since the financial crisis.
Minnesota credit union lending was a significant growth area in the third quarter. In the past twelve months, credit unions nationwide have experienced growth in lending that was the fastest since before the Great Recession, according to the Credit Union National Association’s Credit Union Monthly Estimates for September, released on Nov. 1.
Also, in Minnesota, credit union loans outpaced deposit and asset growth, indicating that credit unions continue to support and strengthen communities while creating a positive impact on their own income statements. Loan growth was well-balanced between real estate and non-real estate loans.
“As credit unions lend more to Minnesota consumers, it shows that consumer confidence is increasing as well,” said Mark Cummins, Minnesota Credit Union Network President & CEO. “We’re glad to see credit unions contributing to the overall growth of the state’s economy.”
Membership
The latest available results, through Q2 2013, show that Minnesota credit union membership grew by 12,000 to reach 1,591,000 – a 0.8 percent growth rate. This pace is slower than the 1.3 percent growth rate reported in the second quarter of 2012, but indicates that consumers continue to choose credit unions as their financial partner.
Assets
Minnesota credit union assets grew by just over seven-tenths of a percent between Q2 2013 and Q3 2013, with five percent growth between Q3 2012 and Q3 2013.
Deposits
Deposits at Minnesota credit unions increased 0.4 percent in Q3 2013 from Q2 2013, with a 5.35 percent increase year-over-year from Q3 2012 to Q3 2013.
Total loans
Loan balances increased 2.69 percent in Q3 2013, building on the 2.71 percent increase realized in the second quarter. Year-over-year loan growth was 5.81 percent between Q3 2012 and Q3 2013.
Net Income
Minnesota credit unions are rated as “well-capitalized” by the National Credit Union Administration (NCUA), with a net worth of 9.98 percent. The NCUA considers a credit union as well-capitalized if its net worth is above 7 percent.
Credit unions submit quarterly data to the National Credit Union Administration (NCUA). The summary and analysis above was compiled by the Minnesota Credit Union Network.
Credit Unions are Safe, Financially Sound & Secure
The NCUA is the federal insurance and regulatory agency for credit unions, similar to the FDIC for banks. The National Credit Union Share Insurance Fund (NCUSIF) insures individual accounts up to $250,000 and joint accounts up to $250,000 per member. The NCUSIF is funded by credit unions and has never received taxpayer money. NCUSIF, like FDIC’s insurance fund, is backed by the full faith and credit of the U.S. government.
The Minnesota Credit Union Network is an organization representing the state’s 134 not-for-profit cooperative credit unions serving more than 1.5 million member-owners in Minnesota. For more information, visit www.mncun.org.