Credit Union Times - January 13, 2021

a quarter’s total has topped $1 trillion since 2003.

The total rose because of agreater-than-expected volume ofrefinances. The wave is expectedto start showing year-over-yeardeclines in mid-2021.

The rising total also means that
credit unions’ share of origina-
tions was smaller. Originations
were 7.6% for the third quarter
instead of the 8.4% based on the
MBA’s Nov. 18 estimates and the
NCUA’s national quarterly data
released Dec. 4 for the nation’s

5,133 federally-insured creditunions.

The MBA’s Dec. 21 report madeno changes to mortgage balances.

The credit union’s share of the
nation’s pool of mortgages was
3.9% on Sept. 30 – unchanged
from June and up from 3.6% in
September 2019. n Lending
CONT. FROM PAGE 1

Key Takeaways

Y CUs had strong lending numbers in mostregions around the country in 2020.

Y CUs originated more than $80 billion in firstmortgages through three quarters of 2020.

Y The Midwest saw the largest increase ofmortgage originations at +67%.

$800

$1,000

Credit UnionsBanks and others

$600

$400

$200

SOURCE: ;e NCUA and Mortgage Bankers Association with data analysis by Jim DuPlessis, correspondent-at-large, CU Times.

2019 2020

Q1 Q2 Q3

Credit unions originated $81 billion in the three months ending Sept. 30, or 7.5% of the $1.08 trillion by alllenders, down from 8.5% in June.

Credit Union Share of First Mortgages Slips

First mortgage originations for three months of quarter in billions

WEST
NORTH
CENTRAL EAST
WEST
SOUTH
CENTRAL
EAST
SOUTH
CENTRAL
SOUTH
ATLANTIC

MIDDLE
ATLANTIC
NEW
ENGLANDND
NEW ENGLAND:

$4.3B, +62%

MIDWEST:

$19.1B, +67%

PACIFIC:

$18.3B,+43%

EAST
SOUTH
CENTRAL:
$2.9B, +64%
WEST
SOUTH
CENTRAL:
$6.2B, +60%
MOUNTAIN:

$9.9B, +62%

SD
NE
KS
OK
TX
AR
LA
MS AL
FL
GA
SC

NC
VA
DC
MD
DE
WV
KY
TN
IA
MN
WI
IL IN OH
MI
PA

NYVT

NH
ME
MA

CT RINJ

0 200 400 Miles

0 200 400 MilesHI

0 100 200 Miles

SOUTHATLANTIC:

$14.3B, +48%MIDDLEATLANTIC:$6.3B, +49%

U.S.: $81.7B, +55%

PACIFICPACIFIC

First Mortgage Originations Rose in Third Quarter

From July to September credit unions generated $81.7 billion in first mortgages, up 55% from originations in 2019’s second quarter. Except in New England,growth in coastal areas was under 50%.

SOURCE: NCUA data on U.S. Census map with data analysis by Jim DuPlessis, correspondent-at-large, CU Times. Credit union values are weighted based on branch distribution by state.

SOURCE: ;e NCUA with data analysis by Jim DuPlessis, correspondent-at-large, CU Times.

-2%

Net income
Provisions for loan losses
Other non-interest
expenses
Employee compensation
and benefits
All other
operating income
Fee income
Net interest income
before loan loss provisions

2.75%

3.19%

0.46%

0.63%

0.99%

0.81%

- 1.52%

- 1.64%

- 1.39%- 1.58%

-0.50%

-0.42%

0.80%

1.00%

2020 Q3
2019 Q3
Income components for the three months ending Sep.30
expressed as annualized amounts per average assets.
Tighter interest margins were the biggest cause of declining
net income followed by larger loan loss provisions.