ALEXANDRIA, Va.–Federally insured credit unions in Idaho and Alaska saw the greatest median growth rate in assets during 2018, while Delaware, Arkansas, New Jersey and Louisiana saw negative median asset growth,according to the latest NCUA Quarterly U.S. Map Review.
The review tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia. The agency noted that nationally, overall membership growth continued and the strongest growth continued to be concentrated in larger credit unions. Eighty-eight percent of federally insured credit unions reported positive net income during 2018.
According to NCUA data, nationally median asset growth over the year ending in the fourth quarter of 2018 was 1.75. In other words, half of all federally insured credit unions had asset growth at or above 1.75 and half had asset growth of 1.75 or less, NCUA said. In the year ending in the fourth quarter of 2017, the median growth rate in assets was 2.55.
Here’s a look at how credit unions performed nationally by category and state. All analysis below is from NCUA:
Share & Deposit Growth
- Nationally, median growth in shares and deposits over the year ending in the fourth quarter of 2018 was 1.35. In the year ending in the fourth quarter of 2017, the median growth rate in shares and deposits was 2.45.
- Over the year ending in the fourth quarter of 2018, median growth in shares and deposits was highest in Idaho (8.55) and Alaska (5.65).
- Median growth in shares and deposits was negative in Arkansas (-1.15), Louisiana and New Jersey (both -0.75), and Delaware (-0.35) over the year ending in the fourth quarter of 2018. At the median, shares and deposits were unchanged in West Virginia and grew the least in Texas (0.15) and Kansas (0.25).
Membership Growth
- Nationally, median growth in membership over the year ending in the fourth quarter of 2018 was 0.25. In the year ending in the fourth quarter of 2017, membership was unchanged at the median, NCUA said.
- Over the year ending in the fourth quarter of 2018, credit unions headquartered in Alaska (3.4%) and South Dakota and Washington (both 2.6%) posted the highest median membership growth rates.
- In 15 states, the median membership growth rate for federally insured credit unions was negative. At the median, membership declined the most in the District of Columbia (-1.7%), followed by Pennsylvania (-1.55). At the median, membership was unchanged in Indiana, Maryland, and New York. Credit unions with falling membership tend to be small; about 755 had less than $50 million in assets.
Loan Growth
- Nationally, the median growth rate in loans outstanding was 5.95% over the year ending in the fourth quarter of 2018. The median loan growth rate during the previous year was 5.05%.
- Over the year ending in the fourth quarter of 2018, median loan growth was positive in every state. Median loan growth was strongest in Minnesota (10.05%), followed by Washington (9.25%).
- The slowest median growth in loans outstanding was in New Jersey (0.85) and the District of Columbia (2.25).
Delinquency
- At the end of the fourth quarter of 2018, the median total delinquency rate among federally insured credit unions was 69 basis points, compared to 76 basis points in the fourth quarter of 2017.
- At the end of the fourth quarter of 2018, the median delinquency rate was highest in New Jersey (162 basis points), followed by West Virginia (131 basis points).
- The median delinquency rate was lowest in Nevada (25 basis points), followed by New Hampshire (30 basis points).
Loan to Share
Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 705 at the end of the fourth quarter of 2018. At the end of the fourth quarter of 2017, the median loans-to- shares ratio was 665.
- The median loans-to-shares ratio was highest in Vermont (925), followed by Idaho and Wisconsin (both 885).
- The median loans-to-shares ratio was lowest in Hawaii (525) and Delaware and New Jersey (both 535).
Return on Assets
- Nationally, the median return on average assets at federally insured credit unions was 57 basis points during 2018, compared to 38 basis points during 2017.
- Nevada (97 basis points) had the highest median return on average assets during 2018, followed by Oregon (92 basis points).
- New Jersey (34 basis points) had the lowest median return on average assets, followed by Louisiana (41 basis points).
State Share of CUs With Positive Net Income
- Nationally, 88% of federally insured credit unions had positive net income during 2018, compared to 82% during 2017.
- At least 75% of credit unions in every state had positive net income during 2018.
- The share of federally insured credit unions with positive net income was highest in Nevada and Vermont (both 100%), followed by Maine and Oregon (both 98%).
- The share was lowest in the District of Columbia (77%), followed by Louisiana (78%).