ALEXANDRIA, Va. –During Q3, credit unions in Idaho and Wyoming led the way in asset growth (assets declined the most in New Jersey and West Virginia), lending was strongest in Hawaii and Montana, and membership was up overall but down in 18 states, according to a new analysis from NCUA.
The agency’s just released NCUA Quarterly U.S. Map Review has found federally insured credit unions experienced growth in loans, positive net income, and delinquencies in the third quarter of 2023, along with a decline in assets, shares, and deposits.
According to the report, nationally:
- Median asset growth over the year ending in the third quarter of 2023 was negative 1.6, down from 3.4% one year ago.
- Median growth in shares and deposits over the year ending in the third quarter of 2023 was negative 3.5, compared with 3.7% a year ago.
- Loans outstanding at federally insured credit unions rose 8.5% at the median over the year ending in the third quarter of 2023. During the previous year, loans increased by 10.1% at the median.
- At the end of the third quarter of 2023, the median total delinquency rate among federally insured credit unions was 52 basis points, compared with 40 basis points in the third quarter of 2022.
Here's a more detailed look at how NCUA is reporting credit unions performed by category:
Median Asset Growth
- While aggregate assets in federally insured credit unions continued to grow during the year ending in the third quarter of 2023, at the median, assets declined 1.6%. In other words, the agency said, half of all federally insured credit unions had asset growth at or above negative 1.6% and half had asset growth of negative 1.6% or less. In the year ending in the third quarter of 2022, the median growth rate in assets was 3.4%.
- Over the year ending in the third quarter of 2023, median asset growth was fastest in Idaho (6.8%) and Wyoming (2.8%).
- At the median, assets declined in forty states and Washington, D.C., over the year ending in the third quarter of 2023. New Jersey (-4.7%) and West Virginia (-4.2%) experienced the largest declines in median assets over the year.
Median Annual Share and Deposit Growth
- Nationally, shares and deposits continued to increase in the aggregate during the year ending in the third quarter of 2023, while the median growth in shares and deposits was negative 3.5%. In the year ending in the third quarter of 2022, the median growth rate in shares and deposits was 3.7%.
- Over the year ending in the third quarter of 2023, median growth in shares and deposits was positive in three states: Wyoming (3.1%), Idaho (2.5%), and New Hampshire (0.2%).
- At the median, shares and deposits declined the most in New Jersey (-6.6%) and West Virginia (-6.2%).
Median Annual Membership Growth
- Nationally, membership remained roughly unchanged at the median in the year ending in the third quarter of 2023.
- Membership declined by 0.2% at the median in the year ending in the third quarter of 2022. Overall, about 51% of federally insured credit unions had more members at the end of the third quarter of 2023 than a year earlier. Credit unions with falling membership tend to be small; about 60% had less than $50 million in assets in the third quarter of 2023, NCUA said.
- Over the year ending in the third quarter of 2023, credit unions headquartered in Idaho (3.5%) and Alaska (2.7%) experienced the strongest median membership growth.
- At the median, membership declined in 18 states over the year. New Jersey (-1.7%) and Rhode Island (1.3%) saw the largest median declines in membership during that time. Membership was virtually unchanged in Washington, D.C., and three states at the median.
Median Annual Loan Growth
- Nationally, loans outstanding rose by 8.5% at the median over the year ending in the third quarter of 2023. During the previous year, loans increased by 10.1% at the median.
- Over the year ending in the third quarter of 2023, median loan growth was strongest in Hawaii and Montana (both 14.1%), followed by South Dakota (12.6%).
- At the median, loans outstanding grew the least in Oklahoma over the year (2.3%), followed by Nevada and Washington, D.C. (both 3.5%).
Median Total Delinquency Rate
- At the end of the third quarter of 2023, the median total delinquency rate among federally insured credit unions was 52 basis points, compared with 40 basis points in the third quarter of 2022.
- At the end of the third quarter of 2023, the median delinquency rate was highest in New Jersey (110 basis points) and Mississippi (102 basis points).
- The median delinquency rate was lowest in New Hampshire (24 basis points) and Utah (25 basis points) at that time.
Median Loan-to-Share Ratio
NCUA noted loan-to-share ratios are rounded to the nearest percentage point.
- Nationally, the median ratio of total loans outstanding to total shares and deposits (the loan-to-share ratio) was 70% at the end of the third quarter of 2023. At the end of the third quarter of 2022, the median loan-to-share ratio was 61%.
- The median loan-to-share ratio was highest in Idaho (92%) and Wyoming (88%) at the end of the third quarter of 2023.
- The median loan-to-share ratio was lowest in Delaware (46%) and Connecticut (50%) at that time.
Annualized Return on Average Assets
- Nationally, the median annualized return on average assets at federally insured credit unions was 67 basis points in the first three quarters of 2023, compared with 50 basis points in the first three quarters of 2022.
- Georgia (111 basis points) and Nevada (104 basis points) had the highest median annualized return on average assets in the first three quarters of 2023.
- Washington, D.C. (20 basis points), and New Jersey (27 basis points) had the lowest median annualized return on average assets during that time.
Share of Credit Unions with Positive Net Income
NCUA said shares of federally insured credit unions with positive net income are rounded to the nearest percentage point.
- Nationally, 87% of federally insured credit unions had positive year-to-date net income at the end of the third quarter of 2023, compared with 83% at the end of the third quarter of 2022.
- The share of federally insured credit unions with positive year-to-date net income at the end of the third quarter of 2023 was highest in Maine and New Hampshire (both 100%), followed by Montana and Utah (both 98%).
- The share was lowest in Washington, D.C., (59%) and Alaska (67%) at that time.
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