COLUMBUS, Ohio—A study of Ohio credit unions shows that over the last five years state-chartered CUs have outperformed their federally chartered counterparts.
The finding by the Ohio CU League comes at a time when many FCUs across the country are switching to state charters to help with expansion.
Performing the analysis for a meeting with the Ohio Division of Financial Institutions, the OCUL found that while 45% of Ohio’s credit unions are state chartered, they hold 64% of all the state’s assets and members. Assets among Ohio state charters have grown 29% over the last five years, compared to the national average of 26% and 15% among Ohio’s federal charters.
“Additionally, the net worth ratio is at its highest average since 2010, 11.24% for state charters and 11.24% for federal charters,” the league stated.
Other performance markers found in the analysis of state-chartered CUs:
- Average assets sit at $112 million
- Average capital ratio of 11.67%
- ROA is positive on average at 0.60%
- Loans grew at 9.76%
- Membership grew at a rate of 4.38%
- And delinquency continues to drop, down to 0.86%
“Over the last five years, Ohio credit unions in general have shown a strong drive to grow, and it’s clearly paying off,” the league concluded. “Positive growth has been seen along all asset ranges in both state and federal charters.”