ALEXANDRIA, Va.–New data released by NCUA show once again that the overall performance of federally insured credit unions appears solid, but beneath those numbers large numbers of CUs are treading water at best, especially those with limited assets.
The data, released as part of NCUA’s latest Quarterly U.S. Map Review, indicate that overall CUs experienced continued growth in assets, shares and deposits, and loans during 2022, but while overall membership continued to grow during the year ending in the fourth quarter of 2022, at the median, membership remained virtually unchanged and declined by 0.4% at the median.
“Overall, roughly half of federally insured credit unions had fewer members at the end of the fourth quarter of 2022 than a year earlier,” NCUA said.
Membership actually declined in 24 states and the District of Columbia.
On the plus side, loans outstanding rose by 12.7% at the median over the year ending in the fourth quarter of 2022, with a slight increase in delinquencies.
Here’s a look at how NCUA reports credit unions performed by category in the most recent report:
Median Annual Asset Growth
- Nationally, median asset growth over the year ending in the fourth quarter of 2022 was 1.3%. In other words, half of all federally insured credit unions had asset growth at or above 1.3% and half had asset growth of 1.3% or less. In the year ending in the fourth quarter of 2021, the median growth rate in assets was 8.8%.
- Over the year ending in the fourth quarter of 2022, median asset growth was highest in Wyoming (6.2%) and Idaho (5.8%).
- At the median, assets remained roughly unchanged in Mississippi and declined in Washington, D.C., and in four states, led by Delaware (-1.9%) and New Jersey (-1.8%).
Median Annual Share & Deposit Growth
- Nationally, median growth in shares and deposits over the year ending in the fourth quarter of 2022 was 0.9%. In the year ending in the fourth quarter of 2021, the median growth rate in shares and deposits was 9.6%.
- Over the year ending in the fourth quarter of 2022, median growth in shares and deposits was highest in Wyoming (6.3%) and Alaska (4.4%).
- At the median, shares and deposits remained roughly unchanged in Hawaii and Illinois and declined in eight states, led by New Jersey (-2.6%) and Louisiana (-1.2%).
Median Annual Membership Growth
- While overall membership in federally insured credit unions continued to grow during the year ending in the fourth quarter of 2022, at the median, membership remained virtually unchanged. Membership declined by 0.4% at the median in the year ending in the fourth quarter of 2021. Overall, roughly half of federally insured credit unions had fewer members at the end of the fourth quarter of 2022 than a year earlier. Credit unions with falling membership tend to be small; over 60% had less than $50 million in assets in the fourth quarter of 2022.
- Over the year ending in the fourth quarter of 2022, credit unions headquartered in Alaska (5.3%) and Idaho (4.0%) experienced the strongest median membership growth.
- At the median, membership declined in 24 states and Washington, D.C., over the year. Washington, D.C. (-2.8%) and New Hampshire (-2.3%) saw the largest median declines in membership during that time. Membership was virtually unchanged in Georgia, Oklahoma, Tennessee, and Texas at the median.
Median Annual Loan Growth
- Nationally, loans outstanding rose by 12.7% at the median over the year ending in the fourth quarter of 2022. During the previous year, loans grew by 3.0% at the median.
- Over the year ending in the fourth quarter of 2022, median loan growth was strongest in Arizona (23.0%) and Idaho (22.7%).
- At the median, loans outstanding grew the least in Delaware (7.3%) and New Jersey (9.8%) during that time.
Median Total Delinquency Rate
- At the end of the fourth quarter of 2022, the median total delinquency rate among federally insured credit unions was 47 basis points, compared with 38 basis points in the fourth quarter of 2021.
- At the end of the fourth quarter of 2022, the median delinquency rate was highest in New Jersey (107 basis points) and Mississippi (89 basis points).
- The median delinquency rate was lowest in New Hampshire, Rhode Island, and Utah (all 17 basis points), followed by Montana (23 basis points).
Median Loan to Share Ratio
- Nationally, the median ratio of total loans outstanding to total shares and deposits (the loan-to-share ratio) was 64% at the end of the fourth quarter of 2022. At the end of the fourth quarter of 2021, the median loan-to-share ratio was 57%.
- The median loan-to-share ratio was highest in Idaho (91%) and Utah (87%) at the end of the fourth quarter of 2022.
- The median loan-to-share ratio was lowest in Delaware (40%) and New Jersey (45%) at that time.
Median Return on Average Assets
- Nationally, the median return on average assets at federally insured credit unions was 51 basis points in 2022, compared with 50 basis points in 2021.
- Idaho (96 basis points) and South Carolina (81 basis points) had the highest median return on average assets in 2022.
- New Jersey (27 basis points) and Nebraska (29 basis points) had the lowest median return on average assets during that time.
Share of Credit Unions With Positive Net Income
- Nationally, 85% of federally insured credit unions had positive net income in 2022, compared with 84% in 2021.
- At least 70% of federally insured credit unions in every state and Washington, D.C. had positive net income in 2022.
- The share of federally insured credit unions with positive net income was highest in Alaska and Nevada (both 100%), followed by Utah (98%).
- The share was lowest in Rhode Island (71%) and New Jersey (72%) in 2022.
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