MARCH 2012 NUMBER 3

WWW.NCUA.GOV

HIGHLIGHTS

2 Chairman’s Corner CFPB Director Answers Key Questions on NCUA Webinar

CREDIT UNIONS ENDED 2011 IN A
SAFER, STRONGER POSITION
Fourth-Quarter Industry Indicators Improve
as Membership and Total Assets Reach New Highs

3 Building Wealth and Deposits: An Opportunity for Credit Unions – Part II

Key financial measures for credit unions improved in the last quarter of 2011, according to Call Report data submitted by the nation’s 7,094 federally insured credit unions and compiled by NCUA.

4 Board Perspectives Interest Rate Risk Policy and Program: The NCUA Rule

“Credit unions ended 2011 in a safer and
stronger position than at the start of the
year. During the fourth quarter and for the
entire year, credit union savings and lending
grew at healthy rates. Credit union
membership also reached an historic high of
91.8 million on Dec. 31,” said NCUA Board
Chairman Debbie Matz. “Demonstrating
the industry’s resilience, 2011 saw annual
net income jump 41.2 percent to $6.4
billion. As a result, net worth grew 6. 9
percent, reaching $98.4 billion, and the net
worth ratio climbed from 10.06 percent to
10.23 percent.”

The Rites of Spring

6 Understanding Credit Union Indirect Lending Programs

8 Elements of an Effective Member Business Lending Program

10 Trends in Member Complaints and Consumer Inquiries

Membership and Total Assets
Hit Record Highs

Despite a decline in the overall number of federally insured credit unions (from 7,339 to 7,094), the industry continued to add members in 2011. In all, membership increased 398,000 in the last quarter and 1.3 million for the year. Membership growth in the fourth quarter of 2011 stands in contrast to losses of 251,000 in the last quarter of 2010 and 218,000 in the final quarter of 2009. Credit union total assets also continued to rise, reaching $961.8 billion on Dec. 31, an increase of $10.6 billion for the quarter and $47.4 billion for the year.

In recent years, membership has declined or stayed flat during the fourth quarter, but membership rose in last quarter of 2011 to reach an all-time high of 91.8 million members.