ALEXANDRIA, Va.– Federally insured credit unions experienced double-digit asset and share-and-deposit growth over the year ending Sept. 30, with CUs in some states leading the way and CUs in others falling behind, according to new data from NCUA.
Asset growth was biggest in America’s biggest state—Alaska—while growing the least (but still positive) in America’s capital and in Arizona.
NCUA’s Quarterly U.S. Map Review does not break out credit union performance by assets, and as CUToday.info reported earlier the membership and loan growth has been taking place primarily at CUs of $1 billion or more in assets.
The report further notes that compared to third quarter 2019, membership was down slightly at the median, loans outstanding declined 0.6% at the median, the median total delinquency rate was 47 basis points as compared to 61 basis points, the loan-to-share ratio was 62% as compared to 71%, the median annualized return on average assets was 42 basis points as compared to 65 basis points, and 82% of federally insured credit unions had positive net income as compared to 89%.
Below is how CUs performed by category, according to NCUA:
Median Asset Growth
- Nationally, median asset growth over the year ending in the third quarter of 2020 was 12.0%. In other words, half of all federally insured credit unions had asset growth at or above 12.0% and half had asset growth of 12.0% or less. In the year ending in the third quarter of 2019, the median growth rate in assets was 1.9%.
- Over the year ending in the third quarter of 2020, median asset growth was highest in Alaska (17.8%) and Arizona (17.6%).
- At the median, assets grew the least in Washington, D.C. (7.5%) and Arkansas (7.7%).
Median Annual Share & Deposit Growth
- Nationally, median growth in shares and deposits over the year ending in the third quarter of 2020 was 13.4%. In the year ending in the third quarter of 2019, the median growth rate in shares and deposits was 1.5%.
- Over the year ending in the third quarter of 2020, median growth in shares and deposits was highest in Alaska (19.3%) and Maine (19.2%).
- Membership growth at the median, shares and deposits grew the least in Arkansas (9.0%), followed by Louisiana and Washington, D.C. (both 9.2%).
Median Annual Membership Growth
- While overall membership in federally insured credit unions continued to grow during the year ending in the third quarter of 2020, at the median, membership declined 0.4%, NCUA said. Membership was unchanged at the median over the year ending in the third quarter of 2019. Overall, about half of federally insured credit unions had fewer members at the end of the third quarter of 2020 than a year earlier. Credit unions with falling membership tend to be small; about 65% had less than $50 million in assets.
- Over the year ending in the third quarter of 2020, credit unions headquartered in Alaska (3.9%) and Idaho (2.6%) posted the highest median membership growth rates.
- In 26 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 New Jersey (-1.9%), followed by Massachusetts and Pennsylvania (-1.3%).
Median Annual Loan Growth
- Nationally, loans outstanding declined 0.6% at the median over the year ending in the third quarter of 2020. During the previous year, loans grew by 3.8% at the median.
- Over the year ending in the third quarter of 2020, median loan growth was strongest in Wyoming (7.0%) and Idaho (6.2%).
- At the median, loans outstanding declined the most in New Jersey (-7.0%), followed by Delaware and Pennsylvania (both -4.0%).
Median Total Delinquency Rate
- At the end of the third quarter of 2020, the median total delinquency rate among federally insured credit unions was 47 basis points, compared to 61 basis points in the third quarter of 2019.
- At the end of the third quarter of 2020, the median delinquency rate was highest in New Jersey (120 basis points) and Mississippi (79 basis points).
- The median delinquency rate was lowest in Oregon and Utah (both 21 basis points), followed by New Hampshire (22 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 62% at the end of the third quarter of 2020. At the end of the third quarter of 2019, the median loan-to-share ratio was 71%.
- The median loan-to-share ratio was highest in Idaho (80%), followed by Utah and Vermont (both 78%).
- The median loan-to-share ratio was lowest in Delaware and New Jersey (both 44%), followed by Hawaii (46%).
Median Return on Average Assets
- Nationally, the median annualized return on average assets at federally insured credit unions was 42 basis points during the first three quarters of 2020, compared to 65 basis points during the first three quarters of 2019.
- Idaho (85 basis points) and Oregon (82 basis points) had the highest median annualized returns on average assets during the first three quarters of 2020.
- Washington, D.C. (15 basis points), and Massachusetts (24 basis points) had the lowest median annualized returns on average assets during that time.
Share of Credit Unions With Positive Net Income
- Nationally, 82% of federally insured credit unions had positive net income during the first three quarters of 2020, compared to 89% during the first three quarters of 2019.
- At least 65% of credit unions in every state and Washington, D.C., had positive net income during the first three quarters of 2020.
- The share of federally insured credit unions with positive net income was highest in Oregon (98%) and Washington (96%).
- The share was lowest in Washington, D.C., (67%) and Nebraska (69%), NCUA reported.