A recently released National Association of Federally-Insured Credit Unions report examining third quarter consumer lending and loan growth determined expansion remained elevated during the period.
NAFCU officials said its CU Industry Trends analysis showed stronger third quarter consumer lending yielded improved overall loan growth.
“Industry performance was solid in the third quarter,” NAFCU Chief Economist and Vice President of Research Curt Long said. “Membership rose, loan growth improved, and share growth moderated. Net worth ratios improved for every asset class during the quarter.”
Per the report, net interest margin is stabilizing at a historically low level; operating expense ratios declined amid the COVID-19 pandemic, but stabilization is occurring because of stronger hiring; credit union loan growth is exceeding bank loan growth; and
credit unions’ share of first mortgage loan originations declined for five consecutive quarters.
The NAFCU noted CU Industry Trends seeks to aid credit unions in identifying industry performance patterns while promoting comparisons in institutions. The trends are based on NCUA data at the industry level and analyzed by region, state, and asset class.
The quarterly report generated by NAFCU’s award-winning research team is forwarded solely to members, according to the NAFCU. It is considered a useful tool to track credit union progress and compare it against peer averages.