ALEXANDRIA, Va.—Alaska continues to perform well in key growth categories, leading the nation in median membership growth and shares and deposit growth, and coming in second in median asset growth, according NCUA’s state-level data for the first quarter of 2019 for all federally insured CUs.
Conversely, New Jersey shows signs of trouble, with negative growth in all three categories. Overall, in 14 states, the median membership growth rate for federally insured credit unions was negative.
Collectively, credit unions in Q1 improved on their loan growth rate over 2018. Nationally, the median growth rate in loans outstanding was 5.8% over the year ending in the first quarter of 2019. The median loan growth rate during the previous year was 5.0%.
Here are the highlights:
Median Annual Asset Growth
- Nationally, median asset growth over the year ending in the first quarter of 2019 was 1.6%. “In other words, half of all federally insured credit unions had asset growth at or above 1.6%, and half had asset growth of 1.6% or less. In the year ending in the first quarter of 2018, the median growth rate in assets was 2.2%,” the report states.
- Over the year ending in the first quarter of 2019, median asset growth was highest in Idaho (6.2%), followed by Alaska (5.5%).
- Median asset growth was negative in New Jersey (-1.0%) and Kansas (-0.4%) over the year ending in the first quarter of 2019. At the median, assets grew the least in Louisiana (0.1%) and West Virginia (0.3%).
Median Annual Share and Deposit Growth
- Nationally, median growth in shares and deposits over the year ending in the first quarter of 2019 was 1.1%. In the year ending in the first quarter of 2018, the median growth rate in shares and deposits was 2.1%, the data show.
- Over the year ending in the first quarter of 2019, median growth in shares and deposits was highest in Alaska and Idaho (both 5.1%), followed by Utah (4.9%).
- Median growth in shares and deposits was negative in New Jersey (-1.6%), Kansas (-0.7%), Connecticut (-0.2%), and Illinois (-0.1%) over the year ending in the first quarter of 2019. At the median, shares and deposits were unchanged in Arkansas, North Carolina, and West Virginia and grew the least in Virginia (0.1%) and Louisiana and Texas (both 0.2%).
Median Annual Membership Growth
- Nationally, median growth in membership over the year ending in the first quarter of 2019 was 0.2%. In the year ending in the first quarter of 2018, membership was unchanged at the median.
- Over the year ending in the first quarter of 2019, credit unions headquartered in Alaska (2.9%) and Nevada (2.6%) posted the highest median membership growth rates.
- In 14 states, the median membership growth rate for federally insured credit unions was negative. At the median, membership declined the most in Illinois (-1.4%), followed by New Jersey and Pennsylvania (both -1.3%). At the median, membership was unchanged in Maryland, Louisiana, Texas, and West Virginia. Credit unions with falling membership tend to be small: about 75% had less than $50 million in assets, the report states.
Median Annual Loan Growth
- Nationally, the median growth rate in loans outstanding was 5.8% over the year ending in the first quarter of 2019. The median loan growth rate during the previous year was 5.0%.
- Over the year ending in the first quarter of 2019, median loan growth was positive in every state. Median loan growth was strongest in Missouri (9.6%), followed by Minnesota (9.2%).
- The slowest median growth in loans outstanding was in New Jersey (0.5%) and Arkansas (0.9%).
Median Total Delinquency Rate
- At the end of the first quarter of 2019, the median total delinquency rate among federally insured credit unions was 54 basis points, compared to 60 basis points in the first quarter of 2018.
- At the end of the first quarter of 2019, the median delinquency rate was highest in New Jersey (133 basis points), followed by West Virginia (105 basis points).
- The median delinquency rate was lowest in Nevada (27 basis points), followed by New Hampshire and Oregon (both 28 basis points).
Median Loans-to-Shares Ratio
- Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 68% at the end of the first quarter of 2019. At the end of the first quarter of 2018, the median loans-to-shares ratio was 64%.
- The median loans-to-shares ratio was highest in Vermont (88%), followed by Idaho (87%).
- The median loans-to-shares ratio was lowest in Delaware (49%) and Hawaii and New Jersey (both 51%), the data show.
Median Return on Average Assets
- Nationally, the median annualized return on average assets at federally insured credit unions was 56 basis points during the first quarter of 2019, compared to 48 basis points during the first quarter of 2018.
- Nevada, New Mexico, Oregon, and Utah (all 86 basis points) had the highest median annualized return on average assets during the first quarter of 2019, followed by South Carolina (83 basis points).
- Connecticut (35 basis points) had the lowest median annualized return on average assets, followed by New Jersey (36 basis points).
Share of Credit Unions with Positive Net Income
- Nationally, 86% of federally insured credit unions had positive net income during the first quarter of 2019, compared to 83% during the first quarter of 2018.
- At least 60% of credit unions in every state had positive net income during the first quarter of 2019, the report shows.
- The share of federally insured credit unions with positive net income was highest in Nevada, New Hampshire, and Vermont (all 100%), followed by Maine and New Mexico (both 98%).
- The share was lowest in the Arkansas (64%), followed by Louisiana (76%).