In 2012, federally insured credit unions reached an impressive $8.5 billion in earnings. The total is up 36.1% from the previous year and marks the highest earnings to date for credit unions.
While the total number of credit unions has dropped from 2011, membership has increased by 2.2 percent, which is now at 93.8 million loyal members. Overall lending reached $597.7 billion, a 4.6 percent improvement. First mortgage real estate loans and new automobile loans went up to $246.3 billion and $63.3 billion, respectively.
“There are many reasons to be optimistic about the credit union industry’s future,” said Debbie Matz, the chairwoman of the National Credit Union Administration. Taking into consideration current low interest rates, Matz stressed the importance of closely watching the still elevated fixed-rate mortgages, which could pose a risk to the industry in the future.
The credit union institutions with the most financial assets demonstrated the most nationwide growth. Even though other large financial institutions like Wells Fargo and Chase reported individual earnings well above the total $8.5 billion that credit unions claimed, the fact remains that they are growing. More people are looking to become members based on the principle and services offered by their local credit unions. Despite the outside competitive market, these federally insured institutions are expected to grow.
If you would like more information about how credit unions work and how they can benefit you, please contact our Valley Federal Credit Union main branch at 956.456.3108. If you are interested in joining us, visit any of our locations, and we can get you started on a brighter financial future.