ALEXANDRIA, Va. –– While aggregate assets in federally insured credit unions continued to grow during the year ending in the second quarter of 2023, at the median, assets declined 1.0%, according to NCUA’s newly released Quarterly U.S. Map Review. The agency noted that in the year ending in the second quarter of 2022, the median growth rate in assets was 4.2%.
Meanwhile, just over half of federally insured credit unions had more members at the end of the second quarter of 2023 than a year earlier, with more than 60% of those having fewer members having less than $50 million in assets.
According to the NCUA Quarterly U.S. Map Review here’s how credit unions performed by category and by state:
Median Annual Asset Growth
- While aggregate assets in federally insured credit unions continued to grow during the year ending in the second quarter of 2023, at the median, assets declined 1.0%. In other words, half of all federally insured credit unions had asset growth at or above negative 1.0% and half had asset growth of negative 1.0% or less. In the year ending in the second quarter of 2022, the median growth rate in assets was 4.2%, NCUA said.
- Over the year ending in the second quarter of 2023, median asset growth was highest in Alaska (5.9%) and Idaho (5.8%).
- At the median, assets remained roughly unchanged in Montana and declined in thirty-five states and Washington, D.C. over the year ending in the second quarter of 2023. New Jersey (-4.1%) and Mississippi (-3.1%) experienced the largest declines in median assets during that time.
Median Annual Share and Deposit Growth
- Nationally, shares and deposits continued to increase in the aggregate during the year ending in the second quarter of 2023, while the median growth in shares and deposits was negative 2.4%. In the year ending in the second quarter of 2022, the median growth rate in shares and deposits was 4.8%.
- Over the year ending in the second quarter of 2023, median growth in shares and deposits was positive in five states, led by Alaska (3.9%) and New Mexico (1.4%).
- At the median, shares and deposits declined the most in Delaware (-5.0%) and New Jersey (-4.9%).
Median Annual Membership Growth
- Nationally, membership increased by 0.2% at the median in the year ending in the second quarter of 2023. Membership declined by 0.4% at the median in the year ending in the second quarter of 2022. Overall, about 53% of federally insured credit unions had more members at the end of the second quarter of 2023 than a year earlier. Credit unions with falling membership tend to be small; over 60% had less than $50 million in assets in the second quarter of 2023, NCUA said.
- Over the year ending in the second quarter of 2023, credit unions headquartered in Alaska (4.7%) and Wyoming (3.5%) experienced the strongest median membership growth.
- At the median, membership declined in Washington, D.C. and 17 states over the year. New Jersey (-1.2%) and Pennsylvania (-0.9%) saw the largest median declines in membership during that time. Membership was virtually unchanged in five states at the median.
Median Annual Loan Growth
- Nationally, loans outstanding rose by 11.0% at the median over the year ending in the second quarter of 2023. During the previous year, loans grew by 7.2% at the median.
- Over the year ending in the second quarter of 2023, median loan growth was strongest in Arkansas (16.2%) and Nevada (15.0%).
- At the median, loans outstanding grew the least in Washington, D.C. (6.0%) and Utah (7.5%) during that time.
Median Total Delinquency Rate
- At the end of the second quarter of 2023, the median total delinquency rate among federally insured credit unions was 45 basis points, compared with 38 basis points in the second quarter of 2022.
- At the end of the second quarter of 2023, the median delinquency rate was highest in New Jersey (109 basis points), followed by Alaska and Delaware (both 81 basis points).
- The median delinquency rate was lowest in New Hampshire (15 basis points) and Utah (22 basis points) at that time.
Median Loan-to-Share Ratio
- Loan-to-share ratios are rounded to the nearest percentage point.
- Nationally, the median ratio of total loans outstanding to total shares and deposits (the loan-to-share ratio) was 68% at the end of the second quarter of 2023. At the end of the second quarter of 2022, the median loan-to-share ratio was 58%.
- The median loan-to-share ratio was highest in Idaho (92%) and Wyoming (88%) at the end of the second quarter of 2023.
- The median loan-to-share ratio was lowest in Delaware (45%) and New Jersey (48%) at that time.
Median Return on Average Assets
- Nationally, the median annualized return on average assets at federally insured credit unions was 66 basis points in the first half of 2023, compared with 43 basis points in the first half of 2022.
- Georgia (95 basis points) and Vermont (94 basis points) had the highest median annualized return on average assets in the first half of 2023.
- Washington, D.C. (28 basis points) and New Jersey (39 basis points) had the lowest median annualized return on average assets during that time.
Share of Credit Unions with Positive Net Income
- Nationally, 87% of federally insured credit unions had positive year-to-date net income at the end of the second quarter of 2023, compared with 79% at the end of the second quarter of 2022.
- At least 65% of federally insured credit unions in every state and Washington, D.C. had positive year-to-date net income at the end of the second quarter of 2023.
- The share of federally insured credit unions with positive year-to-date net income at the end of the second quarter of 2023 was highest in Maine, Nevada, and New Hampshire (all 100%), followed by South Dakota (97%).
- The share was lowest in Alaska (67%) and Washington, D.C. (71%) at that time, NCUA said.