WASHINGTON–While credit unions have reported robust overall growth nationally, a new analysis offers insights into how credit unions are growing as defined by NCUA’s five regions.
According to Callahan & Associates:
- Mid-Atlantic credit unions (NCUA Region II) bested national averages in profitability with an ROA of 0.85%. Nationwide, the industry average fell three basis points year-over-year to 0.75%.
- Loan balances soared at western credit unions (NCUA Region V), with loan balances expanding 13.8%, three percentage points faster than the national average of 10.8%.
- Credit unions in the central region (NCUA Region IV) are more effective at converting their deposits to loans than their national peers. These institutions posted an average loan-to-share ratio of 76.6%, 62 basis points above the national average.
- Southeastern credit unions (NCUA Region III) are excelling at deepening their relationships with members, as core deposits expanded 9.1% from March 2015 to March 2016 compared to 8.4% at the national level.
- The states comprising NCUA’s Region I served 18.5 million members as of March 2016, a 4.4% jump from the previous year, and 64 basis points higher than the national growth rate.
“Across the United States, credit unions are posting improvements in financial, operational, and member-impact metrics,” said Callahan analyst Stephanie Clark. “Despite varying regional trends and economic conditions, the prominence and success of credit unions in these local markets has never been more apparent.”
Credit unions across the country are reaching new highs in the depth of their relationships with their members, as the average member relationship hit a record of $17,245, a 4.2% jump from one year ago, Callahan’s reported.