ALEXANDRIA, Va.– Year-over-year median asset growth for credit unions as of June 30 was 10%, with Vermont and Nevada leading the way, while overall membership actually declined 0.3%, with 70% of CUs under $50 million in assets losing members, according to new data from NCUA.
The NCUA Quarterly U.S. Map Review for the second quarter of 2020 showed the asset growth at mid-year, driven by the influx of deposits due to the coronavirus-related economic slowdown, was substantially ahead of the 1.7%
At the median, assets grew the least in Louisiana and New Jersey (both 6.1%), followed by Arkansas and Washington, D.C. (both 6.6%), NCUA said.
Among the data released by NCUA:
Shares & Deposits
- Nationally, median growth in shares and deposits over the year ending in the second quarter of 2020 was 11.1%. In the year ending in the second quarter of 2019, the median growth rate in shares and deposits was 1.1%.
- Over the year ending in the second quarter of 2020, median growth in shares and deposits was highest in Maine (17.4%) and Wyoming (17.0%).
- At the median, shares and deposits grew the least in Louisiana and Washington, D.C. (both 6.5%), followed by New Jersey (6.8%).
Membership
- While overall membership in federally insured credit unions continued to grow during the year ending in the second quarter of 2020, at the median, membership declined 0.3%, NCUA reported. Membership was unchanged at the median over the year ending in the second quarter of 2019. Overall, about half of federally insured credit unions had fewer members at the end of the second quarter of 2020 than a year earlier. Credit unions with falling membership tend to be small; nearly 70% had less than $50 million in assets.
- Over the year ending in the second quarter of 2020, credit unions headquartered in Alaska (3.1%) and Idaho (2.1%) posted the highest median membership growth rates.
- In 25 states and Washington, D.C., the median membership growth rate for federally insured credit unions was negative. At the median, membership declined the most in New Jersey (-1.7%) and Pennsylvania (-1.4%).
Loan Growth
- Nationally, the median growth rate in loans outstanding was 0.2% over the year ending in the second quarter of 2020. The median loan growth rate during the previous year was 4.6%.
- Over the year ending in the second quarter of 2020, median loan growth was strongest in Idaho (6.7%) and Wyoming (6.1%).
- At the median, loans outstanding declined the most in New Jersey (-5.6%) and Louisiana (-3.4%).
Delinquencies
- At the end of the second quarter of 2020, the median total delinquency rate among federally insured credit unions was 52 basis points, compared to 60 basis points in the second quarter of 2019.
- At the end of the second quarter of 2020, the median delinquency rate was highest in New Jersey (141 basis points), followed by Connecticut and Mississippi (both 85 basis points).
- The median delinquency rate was lowest in New Hampshire (23 basis points), followed by Oregon and Utah (both 24 basis points).
Loans to Shares
- Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 63% at the end of the second quarter of 2020. At the end of the second quarter of 2019, the median loans-to- shares ratio was 70%.
- The median loans-to-shares ratio was highest in Idaho (82%) and Vermont (79%).
- The median loans-to-shares ratio was lowest in New Jersey (44%), followed by Delaware, Hawaii, and Pennsylvania (all 47%).
ROA
- Nationally, the median annualized return on average assets at federally insured credit unions was 39 basis points during the first half of 2020, compared to 63 basis points during the first half of 2019.
- Utah (73 basis points) and Idaho (72 basis points) had the highest median annualized returns on average assets during the first half of 2020.
- Maryland and Nebraska had the lowest median annualized return on average assets during that time (both 20 basis points), followed by Delaware (22 basis points), NCUA reported.
Net Income
- Nationally, 81% of federally insured credit unions had positive net income during the first half of 2020, compared to 88% during the first half of 2019.
- At least 65% of credit unions in every state and Washington, D.C., had positive net income during the first half of 2020.
- The share of federally insured credit unions with positive net income was highest in Oregon (96%), followed by New Mexico, Vermont, and Washington (all 95%).
- The share was lowest in Arizona and Washington, D.C. (both 67%), followed by Nebraska (68%).