Another (mostly) good year for credit unions: NCUA
March 18, 2019 2:47 PM
Continued positive trends for credit unions
The latest Quarterly Map Review from the National Credit Union Administration, which covers the fourth quarter of 2018, shows a continuation of what the agency called "positive trends" seen in previous quarters. Among the highlights, median loan growth at federally insured CUs was at 5.9 percent; median asset growth was 1.7 percent; the median rate of growth in shares and deposits was 1.3 percent; and the median loans-to-shares ratio was 70 percent.
Read on for more highlights and a look at state-level leaders in a variety of areas.
Recent CU Journal coverage of these reports can be foundhere and here .
Read on for more highlights and a look at state-level leaders in a variety of areas.
Recent CU Journal coverage of these reports can be found
Passman, Aaron
Median annual asset growth
Nationally, median asset growth was 1.7 percent. In other words, the regulator said, half of all federally insured credit unions had asset growth at or above 1.7 percent and half had asset growth of 1.7 percent or less. In the year ending in the fourth quarter of 2017, the median growth rate in assets was 2.5 percent.
Idaho, Alaska lead asset growth
Median asset growth was highest in Idaho (7.2 percent), followed by Alaska (5.7 percent).
Median asset growth was negative in four states
Median asset growth was negative in Delaware (-1.2 percent), Arkansas (-0.5 percent), New Jersey (-0.3 percent), and Louisiana (-0.1 percent) over the year ending in the fourth quarter of 2018. At the median, assets grew the least in West Virginia and Connecticut (both 0.1 percent). This is the fifth straight quarter Louisiana has registered negative asset growth, and the fourth straight negative quarter for New Jersey.
Passman, Aaron
Median annual share and deposit growth
Nationally, median growth in shares and deposits was 1.3 percent in 2018. In the year ending in the fourth quarter of 2017, the median growth rate in shares and deposits was 2.4 percent.
Idaho CUs continue to grow shares and deposits
Median growth in shares and deposits was highest in Idaho (8.5 percent) and Alaska (5.6 percent). Idaho was second in this category in Q1 and Q2, and then first in Q3.
Arkansas one of four states with negative share/deposit growth
Median growth in shares and deposits was negative in four states: Arkansas (-1.1 percent), Louisiana and New Jersey (both -0.7 percent), and Delaware (-0.3 percent). At the median, shares and deposits were unchanged in West Virginia and grew the least in Texas (0.1 percent) and Kansas (0.2 percent). Louisiana has had negative growth in this category for six consecutive quarters.
Passman, Aaron
Median annual membership growth
Nationally, median growth in membership over the year ending in the fourth quarter of 2018 was 0.2 percent. In the year ending in the fourth quarter of 2017, membership was unchanged at the median. As previously reported by Credit Union Journal, CUs with falling membership tend to be small: approximately 75 percent had less than $50 million in assets, according to NCUA.
Membership boom continues in Alaska, South Dakota and Washington
Credit unions headquartered in Alaska (3.4 percent) and South Dakota and Washington (both 2.6 percent) posted the highest median membership growth rates. Alaska was the leader in this category in all four quarters of 2018.
Bloomberg Creative Photos/Bloomberg
Credit unions in D.C. continue to shed members
The median membership growth rate for federally insured credit unions was negative in 15 states. At the median, membership declined the most in the District of Columbia (-1.7 percent), followed by Pennsylvania (-1.5 percent). At the median, membership was unchanged in Indiana, Maryland, and New York. CUs in the District of Columbia had the second-largest decline in Q2, Q3 and Q4 2017, and then had the largest decline in all four quarters of 2018.
Passman, Aaron
Median annual loan growth
Nationally, the median growth rate in loans outstanding was 5.9 percent. In the previous year, the median loan growth rate was 5.0 percent.
Minnesota, Washington again lead loan growth
Median loan growth was positive in every state. Median loan growth was strongest in Minnesota (10.0 percent), followed by Washington (9.2 percent). Minnesota also led this category in Q3 2018. Washington has been first or second in this category for five consecutive quarters.
Lending still lagging in New Jersey
The slowest median growth in loans outstanding was in New Jersey (0.8 percent) and the District of Columbia (2.2 percent). Lending troubles are a long-running theme in the Garden State: In 2017, New Jersey was tied for slowest median loan growth in Q2, was second-slowest in Q3 and had the slowest growth in Q4. In Q1 2018, New Jersey was the only state in the union that had a decline in loans outstanding. In Q2, Q3 and Q4 2018 it had the slowest median growth rate.
Passman, Aaron
Median total delinquency rate
The median total delinquency rate among federally insured credit unions was 69 basis points, compared to 76 basis points in the fourth quarter of 2017.
New Jersey, West Virginia "lead" delinquency rate
The median delinquency rate was highest in New Jersey (162 basis points), followed by West Virginia (131 basis points). New Jersey has been atop this category for 11 straight quarters.
Members in Nevada, New Hampshire pay their loans
The median delinquency rate was lowest in Nevada (25 basis points), followed by New Hampshire (30 basis points). New Hampshire was tied for the second-lowest delinquency rate in Q3 2018.
Passman, Aaron
Median loans-to-shares ratio
Nationally, the median ratio of total loans outstanding to total shares and deposits (also known as the loans-to-shares ratio) was 70 percent at the end of the fourth quarter of 2018. At the end of the fourth quarter of 2017, the median loans-to-shares ratio was 66 percent.
Plenty of green in the Green Mountain State
The median loans-to-shares ratio was highest in Vermont (92 percent), followed by Idaho and Wisconsin (both 88 percent). Idaho and Vermont continue to perform well in this category. Idaho was first or second in all four quarters in 2017, and was the leader in the first three quarters of 2018. Vermont was second in Q1, Q2 and Q3 2018.
Not all is paradise in Hawaii
The median loans-to-shares ratio was lowest in Hawaii (52 percent), followed by Delaware and New Jersey (both 53 percent). Delaware has been among the lowest performers in this category for 12 straight quarters.
Passman, Aaron
Median return on average assets
Nationally, the median return on average assets at federally insured credit unions was 57 basis points during 2018, compared to 38 basis points during 2017.
Nevada, Oregon lead ROAA
Nevada (97 basis points) had the highest median return on average assets during 2018, followed by Oregon (92 basis points). Nevada was the leader in this category for five consecutive quarters, slipped slightly to second in Q2 2018, and then went back to the top in Q3 and Q4.
ROAA continues to drag in New Jersey, Louisiana
New Jersey (34 basis points) had the lowest median return on average assets, followed by Louisiana (41 basis points). New Jersey was the dubious “leader” in this category in Q4 2017, and in all four quarters of 2018.
Passman, Aaron
Share of CUs with positive net income
Nationally, 88 percent of federally insured credit unions had positive net income during 2018, compared to 82 percent during 2017. At least 75 percent of credit unions in every state had positive net income during 2018.
Two states score perfect on positive net income
The share of federally insured credit unions with positive net income was highest in Nevada and Vermont (both 100 percent), followed by Maine and Oregon (both 98 percent). Vermont also scored 100 percent in this category in Q3 2018. Oregon was among the best performers in this category in all four quarters last year.
D.C., Louisina lowest in positive net income
The share of federally insured credit unions with positive net income was lowest in the District of Columbia (77 percent), followed by Louisiana (78 percent). D.C. has been the dubious “leader” of this category for seven straight quarters. Louisiana also was second in all four quarters of 2018.
