ALEXANDRIA, Va.–While federally insured credit unions saw continued improvement in nearly every category during the fourth quarter of 2016, new state-level data from NCUA also reveal something intriguing: Overall, 51% of federally insured credit unions had fewer members at the end of the fourth quarter of 2016 than a year earlier and median membership growth was negative in 23 states.
About 75% of credit unions with declining membership had assets of less than $50 million, according to the NCUA data. Alaska (2.4%) had the highest median membership growth rate over the year ending in the fourth quarter of 2016, followed by Maine (2.0%). At the median, membership declined the most in the District of Columbia (-1.9%), followed by Pennsylvania (-1.5%).
Meanwhile, the highest median growth rates for loans could be found in Oregon, Alaska, and Washington, while CUs in Connecticut and Pennsylvania lagged, according to state-level data compiled by the NCUA.
Nationally, median loan growth in federally insured credit unions was 4.0% during the year ending in the fourth quarter. In the same period, median asset growth was 3.2%; the median rate of growth in deposits and shares was 3.3%; and the median loans-to-shares ratio rose to 64%, the NCUA said.
Oregon and Alaska (both 8.9%), followed by Washington (8.6%) were the loan growth leaders, while growth was tepid in Connecticut (0.1%) and Pennsylvania (0.6%).
Among the highlights of the state data released by NCUA:
- Median asset growth was 3.2% nationally in the year ending in the fourth quarter of 2016, essentially unchanged from the 3.3% rate of growth a year earlier. Median asset growth was fastest in Oregon (6.9%), followed by Nevada (6.4%). Median asset growth was lowest in Arkansas (0.5%) and the District of Columbia (1.1%).
- At the median, shares and deposits rose in every state over the year ending in the fourth quarter. Nationally, the median growth rate in shares and deposits was 3.3%, down from 3.6% a year earlier. The median growth rate in shares and deposits was highest in Washington (6.7%) and Oregon (6.6%). The median growth rate in shares and deposits was lowest in Arkansas (0.3%) and Louisiana (0.5%).
- Nationally, 81% of federally insured credit unions had positive net income during 2016, up from 79% in 2015, NCUA said. At least half of credit unions in every state had positive net income during the year. States where the share of credit unions with positive net income was highest were Idaho and North Dakota (both 95%), followed by New Hampshire (94%). The share of federally insured credit unions with positive net income was lowest in the District of Columbia (60%), followed by Arkansas (66%).
- Nationally, the median return on average assets at federally insured credit unions was 35 basis points during 2016, an increase from 33 basis points in 2015. Vermont (79 basis points) had the highest median return on average assets during 2016, followed by Nevada (70 basis points). The District of Columbia (6 basis points) reported the lowest median return on average assets, followed by Delaware (12 basis points).
- Nationally, the median ratio of loans outstanding to total shares and deposits was 64% at the end of the fourth quarter of 2016, compared to 62% at the end of the fourth quarter of 2015. The median loans-to-shares ratio was highest among credit unions in Idaho (87%) and Alaska (86%). The median loans-to-shares ratio was lowest in Delaware (46%) and Hawaii (47%).
- The median total delinquency rate among federally insured credit unions was 81 basis points at the end of the fourth quarter of 2016, unchanged from the same period in 2015. At the end of the fourth quarter of 2016, the median delinquency rate was lowest in North Dakota (36 basis points), followed by Oregon (38 basis points). It was highest in New Jersey (168 basis points), followed by Mississippi (143 basis points).
- Credit union membership continued its overall growth during the year ending in the fourth quarter of 2016; however, at the median, membership declined 0.1%. The median membership growth rate was negative 0.2% over the previous year.
The NCUA Quarterly U.S. Map Review can be found here.