Christopher Menkin's  Instablog

By David Hayes and Kiah Lau Haslett, SNL Financial

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The nation's largest credit unions continued to grow in 2012, as the sector booked its highest aggregate net income ever.

Aggregate net income at the nation's credit unions jumped 33.54% in 2012 to a record $8.6 billion, according to SNL data, but there was limited movement for spots in the top 10 largest institutions from the year prior and little jostling in the top 50. At $52.44 billion in assets, Vienna, Va.-based Navy Federal Credit Union remained far and away the largest credit union in the United States, more than double the size as the next biggest credit union, Raleigh, N.C.-based State Employees' Credit Union.

Assets grew 11.74% in 2012 at Navy Federal as loans and leases rose 9.84%. One new initiative was the July 2012 launch of its loan participation program, as Navy Federal began buying business loans from other credit unions close to their business lending cap of 12.25% of assets. Navy Federal declined to comment for this story.

State Employees' Credit Union toyed with the idea of entering traditional member small-business lending in 2012 but formally decided against it, Mike Lord, senior vice president of finance and accounting said. Business loans are limited to the mortgages it offers on rental properties, but it was still the sixth-largest credit union business lender with $455.3 million loans as of June 30, 2012, according to SNL Financial.

There are now four credit unions with more than $10 billion in assets, as Boeing Employees Credit Union's popular mortgage programs pushed it above the threshold and into the regulatory scrutiny of the Consumer Financial Protection Bureau.

The credit union is still advertising a 12-year mortgage product with no fees targeting older homeowners with low balances who might not be otherwise inclined to refinance, as well as making members more aware of its jumbo loans. Jumbo loan origination jumped 189% in 2012 from its admittedly low base in 2011, Tom Berquist, senior vice president of member strategies said. It is also adjusting its offerings to appeal to more member small-business owners, mostly sole proprietors, and it reported increased credit card applications and new accounts in 2012 after promoting the product and rates.

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