ALEXANDRIA, Va.–Newly released data show that while overall membership in federally insured credit unions continued to grow during the year ending in the first quarter of 2021, 55% of federally insured credit unions had fewer members at the end of Q1 than a year earlier.
Although asset growth was strongest in Idaho and Nevada, in 28 states and Washington, D.C., the median membership growth rate for federally insured credit unions was negative, NCUA reported.
That data is being reported even as overall, federally insured credit unions continued to experience double-digit asset and share-and-deposit growth over the year ending in the first quarter of 2021, with a slight decline in lending over the same time period and with fewer CUs reporting positive net income.
The data was included in NCUA’s new Quarterly U.S. Map Review, which shows that nationally, median asset growth for federally insured credit unions over the year ending in the first quarter of 2021 was 17.1%, compared with growth of 3.0% during the same period a year earlier.
Shares & Deposits
Nationally, median growth in shares and deposits over the year ending in the first quarter of 2021 was 19.5%, compared with 2.9% during the first quarter of 2020, NCUA said.
Loans outstanding declined 0.4% at the median over the year ending in the first quarter of 2021. This stands in contrast to the previous year when loans grew by 2.0% at the median. NCUA reported the median total delinquency rate among federally insured credit unions was 34 basis points at the end of the first quarter of 2021, compared with 59 basis points in the first quarter of 2020.
According to the agency’s analysis, overall, 77% of federally insured credit unions had positive net income in the first quarter of 2021, compared with 80% in the first quarter of 2020. At least 60% of credit unions in every state and the District of Columbia had positive net income in the first quarter of 2021. The annualized median return on average assets of federally insured credit unions nationally was 38 basis points in the first quarter of 2021, compared with 41 basis points in the first quarter of 2020.
Here’s a look at how credit unions performed by category and by state:
Median Annual Asset Growth
- Nationally, median asset growth over the year ending in the first quarter of 2021 was 17.1%. In other words, half of all federally insured credit unions had asset growth at or above 17.1% and half had asset growth of 17.1% or less. In the year ending in the first quarter of 2020, the median growth rate in assets was 3.0%.
- Over the year ending in the first quarter of 2021, median asset growth was highest in Idaho and Nevada (both 25.5%), followed by Arizona and Oregon (both 23.9%).
- At the median, assets grew the least in Washington, D.C. (10.0%) and Arkansas (12.2%).
Median Annual Share and Deposit Growth
- Nationally, median growth in shares and deposits over the year ending in the first quarter of 2021 was 19.5%. In the year ending in the first quarter of 2020, the median growth rate in shares and deposits was 2.9%.
- Over the year ending in the first quarter of 2021, median growth in shares and deposits was highest in Nevada (28.4%) and Oregon (27.2%).
- At the median, shares and deposits grew the least in Washington, D.C. (11.7%) and Arkansas (14.7%).
Median Annual Membership Growth
- While overall membership in federally insured credit unions continued to grow during the year ending in the first quarter of 2021, at the median, membership declined 0.5%. Membership declined 0.1 at the median over the year ending in the first quarter of 2020. Overall, 55% of federally insured credit unions had fewer members at the end of the first quarter of 2021 than a year earlier. Credit unions with falling membership tend to be small; 65% had less than $50 million in assets.
- Over the year ending in the first quarter of 2021, credit unions headquartered in Alaska and Idaho posted the highest median membership growth rates (both 4.3%), followed by Vermont (2.2%).
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In 28 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 Washington, D.C. (-2.7%) and New Jersey
(-2.5%).
Median Annual Loan Growth
- Nationally, loans outstanding declined 0.4% at the median over the year ending in the first quarter of 2021. During the previous year, loans grew by 2.0% at the median.
- Over the year ending in the first quarter of 2021, median loan growth was strongest in Alaska (10.5%) and Idaho (6.7%).
- In 21 states and Washington, D.C., the median loan growth rate for federally insured credit unions was negative. At the median, loans outstanding declined the most in New Jersey (-7.6%) and Delaware (-6.2%).
Median Total Delinquency Rate
- At the end of the first quarter of 2021, the median total delinquency rate among federally insured credit unions was 34 basis points, compared to 59 basis points in the first quarter of 2020.
- At the end of the first quarter of 2021, the median delinquency rate was highest in New Jersey (93 basis points) and Maryland (59 basis points).
- The median delinquency rate was lowest in Utah (12 basis points) and Nevada (14 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 57% at the end of the first quarter of 2021. At the end of the first quarter of 2020, the median loan-to-share ratio was 68%.
- The median loan-to-share ratio was highest in Idaho and Vermont (73%), followed by Wyoming (72%).
- The median loan-to-share ratio was lowest in New Jersey (39%), followed by Hawaii and Pennsylvania (both 42%).
Median Return on Average Assets
- Nationally, the annualized median return on average assets at federally insured credit unions was 38 basis points in the first quarter of 2021, compared to 41 basis points in the first quarter of 2020.
- Idaho (96 basis points) and Alaska (88 basis points) had the highest annualized median returns on average assets in the first quarter 2021.
- Delaware (14 basis points) had the lowest annualized median return on average assets during that time, followed by Nebraska and Washington, D.C. (both17 basis points).
Share of Credit Unions With Positive Net Income
- Nationally, 77% of federally insured credit unions had positive net income in the first quarter of 2021, compared to 80% in the first quarter of 2020.
- At least 60% of credit unions in every state and Washington, D.C., had positive net income in the first quarter of 2021.
- The share of federally insured credit unions with positive net income was highest in Alaska and Idaho (both 100%), followed by Vermont and Washington (both 94%).
- The share was lowest in Washington, D.C. (61%), and Nebraska (64%).