NCUA data shows sustained growth trends for credit unions
October 11, 2018 4:27 PM
State by state
Credit unions nationwide closed out the first half of 2018 by continuing a series of positive trends.
That’s according to the latest Quarterly Map Review from the National Credit Union Administration, which tracks membership, loans, shares, delinquencies and other indicators.
Some highlight figures: nationally, for the year ending June 30, 2018, median loan growth in federally insured credit unions was 5.4 percent; median asset growth was 2.1 percent; the median rate of growth in shares and deposits was 1.9 percent; and the median loans-to-shares ratio was 63 percent.
That’s according to the latest Quarterly Map Review from the National Credit Union Administration, which tracks membership, loans, shares, delinquencies and other indicators.
Some highlight figures: nationally, for the year ending June 30, 2018, median loan growth in federally insured credit unions was 5.4 percent; median asset growth was 2.1 percent; the median rate of growth in shares and deposits was 1.9 percent; and the median loans-to-shares ratio was 63 percent.
Passman, Aaron
Median asset growth
Nationally, median asset growth over the year ending in the second quarter of 2018 was 2.1 percent. In other words, the regulator said, half of all federally insured credit unions had asset growth at or above 2.1 percent and half had asset growth of 2.1 percent or less. In the year ending in the second quarter of 2017, the median growth rate in assets was 3.9 percent.
Idaho leads in asset growth
Over the year ending in the second quarter of 2018, median asset growth was highest in Idaho (6.3 percent), followed by Maine (5.6 percent). Idaho was second in this category in Q1 2018. Vermont had been first in this category the two previous quarters.
Slide continues in Louisiana
Median asset growth was negative in Louisiana (-1.0 percent), New Jersey (-0.5 percent), Delaware (-0.2 percent), and Rhode Island (-0.1 percent) over the year ending in the second quarter of 2018. At the median, assets grew the least in Arkansas (0.1 percent) and Kansas (0.2 percent). This is the third straight quarter Louisiana has registered negative asset growth, and the second straight negative quarter for New Jersey.
Passman, Aaron
Share and deposit growth
Nationally, median growth in shares and deposits over the year ending in the second quarter of 2018 was 1.9 percent. In the year ending in the second quarter of 2017, the median growth rate in shares and deposits was 4.1 percent.
Maine leads in median growth
Over the year ending in the second quarter of 2018, median growth in shares and deposits was highest in Maine (5.4 percent) and Idaho (5.2 percent). Idaho also was second in this category in Q1. Vermont had been in the top two for three consecutive quarters.
Struggles continue in New Jersey, Louisiana and more
Median growth in shares and deposits was negative in Louisiana (-1.5 percent), New Jersey (-0.6 percent), Arkansas (-0.5 percent), and Rhode Island (-0.2 percent) over the year ending in the second quarter of 2018. At the median, shares and deposits grew the least in Maryland (0.1 percent) and North Carolina (0.3 percent). Louisiana has been the dubious “leader” of this category for four consecutive quarters.
Passman, Aaron
Membership growth
While overall membership in federally insured credit unions continued to grow during the year ending in the second quarter of 2018, at the median, membership was roughly unchanged for the third straight quarter. Membership declined 0.1 percent at the median over the year ending in the second quarter of 2017. Overall, almost half of federally insured credit unions had fewer members at the end of the second quarter of 2018 than a year earlier. As previously reported by Credit Union Journal, CUs with falling membership tend to be small; about 75 percent had less than $50 million in assets.
South Dakota, Alaska lead in membership growth
Over the year ending in the second quarter of 2018, credit unions headquartered in Alaska and South Dakota posted the highest median membership growth rate (both 2.6 percent), followed by credit unions headquartered in Oregon (2.5 percent). Alaska also led this category in Q1 2018.
PA, DC losing members
In 18 states, the median membership growth rate for federally insured credit unions was negative. At the median, membership declined the most in the District of Columbia (-2.9 percent), followed by Pennsylvania (-1.2 percent). CUs in the District of Columbia had the second-largest decline in Q2, Q3 and Q4 2017, and then had the largest decline in Q1 2018.
Passman, Aaron
Loan growth
Nationally, the median growth rate in loans outstanding was 5.4 percent over the year ending in the second quarter of 2018. The median loan growth rate during the previous year was 4.4 percent.
Washington continues to lead loan growth
Over the year ending in the second quarter of 2018, median loan growth was positive in every state. Median loan growth was strongest in Washington (10.5 percent), followed by Colorado (10.3 percent). Washington was second in this category the previous two quarters.
Lending slides in New Jersey
The slowest median growth rate in loans outstanding was in New Jersey (0.7 percent), followed by Arkansas (1.6 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.
Passman, Aaron
Delinquencies down slightly
At the end of the second quarter of 2018, the median total delinquency rate among federally insured credit unions was 62 basis points, compared to 69 basis points in the second quarter of 2017.
Jersey, Mississippi lead in delinquencies
At the end of the second quarter of 2018, the median delinquency rate was highest in New Jersey (143 basis points), followed by Mississippi (112 basis points). New Jersey has been atop this category for nine straight quarters.
Oregon, Colorado see lowest median delinquency rates
The median delinquency rate was lowest in Oregon (25 basis points), followed by Colorado (33 basis points). Oregon had the lowest median delinquency rate in Q2, Q3 and Q4 2017, then had the second-lowest rate in Q1 2018.
Passman, Aaron
Median loans-to-shares ratio
Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 66 percent at the end of the second quarter of 2018. At the end of the second quarter of 2017, the median loans-to-shares ratio was 63 percent.
Loan-to-share ratio highest in Idaho
The median loans-to-shares ratio was highest in Idaho (91 percent), followed by Vermont and Alaska (both 88 percent). Idaho was first or second in this category in all four quarters in 2017, and then was first in Q1 2018. Vermont was second in Q1 2018.
Poor performance continues in Delaware
The median loans-to-shares ratio was lowest in Delaware (49 percent), followed by Pennsylvania (50 percent). Delaware has been among the lowest performers in this category for 10 straight quarters.
Passman, Aaron
ROA on the rise
Nationally, the median annualized return on average assets at federally insured credit unions was 52 basis points during the first half of 2018, compared to 36 basis points during the first half of 2017.
South Carolina leads ROA
South Carolina (91 basis points) had the highest median return on average assets during the first half of 2018, followed by Nevada (84 basis points). The Silver State had been the leader in this category for five consecutive quarters. South Carolina was second in Q1 2018.
NJ, Mass. on the low end for ROA
New Jersey (27 basis points) had the lowest median return on average assets, followed by Massachusetts (31 basis points). New Jersey also was the dubious “leader” in this category in Q4 2017 and Q1 2018.
Passman, Aaron
Positive net income on the rise
Nationally, 85 percent of federally insured credit unions had positive net income during the first half of 2018, compared to 80 percent during the first half of 2017. At least 65 percent of credit unions in every state had positive net income during the first half of 2018.
Nevada a big winner (for positive net income)
The share of federally insured credit unions with positive net income was highest in Vermont and Nevada (both 100 percent), followed by Oregon (98 percent). Oregon was atop this category in Q1 2018.
DC sees lowest level of positive net income
The share of federally insured credit unions with positive net income was lowest in the District of Columbia (66 percent), followed by Louisiana (69 percent). D.C. has been the dubious “leader” of this category for five straight quarters. Louisiana also was second in Q1 2018.
