ALEXANDRIA, Va.–Credit unions in the Pacific Northwest are leading the country when it comes to lending growth, while one large state in the mid-Atlantic region continues to show all but flat growth.
Meanwhile, eight-in-10 credit unions reported positive net income for the first three quarters of the year, even as more than half of all federally insured CUs reported negative member growth, as CUToday.info is reporting here.
The highest median growth rates for lending during the third quarter could be found in Washington (9.7%) and Oregon (8.1%), according to new analysis released by NCUA. Both states also led the way in asset growth.
Nationally, median loan growth in federally insured credit unions was 3.9% during the year ending in the third quarter. In the same period, median asset growth was 4.2%; the median rate of growth in deposits and shares was 4.5%; and the median loans-to-shares ratio rose to 63%, the agency said.
Nationally, median growth in loans outstanding was 3.9% over the year ending in the third quarter of 2016, down slightly from 4.1% the previous year. The highest median growth rates for loans were in Washington (9.7%) and Oregon (8.1%). Median loan growth was lowest in Pennsylvania (0.1%) and Connecticut (0.8%).
The numbers were released as part of the NCUA Quarterly U.S. Map Review, available online here, which tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia. The review also includes information on two important state-level economic indicators: unemployment rates and home price changes.
Among the findings:
- Every state showed positive median loan growth While Washington and Oregon led the way, media loan growth was lowest in Pennsylvania (0.1%) and Connecticut (0.8%).
- Median asset growth was 4.2% nationally in the year ending in the third quarter of 2016, up from 2.4% a year earlier. Median asset growth was fastest in Oregon (8.7%), followed by Washington and Arizona (both 7.5%). Median asset growth was lowest in the District of Columbia (0.6%) and Arkansas (1.8%).
- Shares and deposits rose in every state. At the median, shares and deposits rose in every state over the year ending in the third quarter. Nationally, the median growth rate in shares and deposits was 4.5%, up from 2.3% a year earlier, NCUA said. The median growth rate in shares and deposits was highest in Oregon (8.5%) and Arizona (8.2%). The median growth rate in shares and deposits was lowest in the District of Columbia (0.2%) and Arkansas (2.0%).
- 80% of federally insured credit unions had positive net income during the first three quarters of 2016, up from 78% in the first three quarters of 2015. “At least half of credit unions in every state had positive net income during the first three quarters of this year,” said NCUA. “The share of credit unions with positive net income was highest in Nevada (100%) and Iowa (94%). The share was lowest in Delaware (58%), followed by Arkansas, the District of Columbia and Wyoming (all 66%).
- Nationally, the median annualized return on average assets at federally insured credit unions was 37 basis points over the first three quarters of 2016, up from 35 basis points in the first three quarters of 2015, according to the agency. Nevada (81 basis points) had the highest median return on average assets in the first three quarters of the year, followed by Vermont (79 basis points). Delaware (11 basis points) reported the lowest median return, followed by the District of Columbia (15 basis points).
- Alaska and Idaho paced the nation in highest media loans-to-shares ratios. NCUA said that nationally the median ratio of loans outstanding to total shares and deposits was 63% at the end of the third quarter of 2016, compared to 62% a year earlier. The median loans-to-shares ratio was highest among credit unions in Alaska (87%) and Idaho (86%). The median loans-to-shares ratio was lowest in Delaware (43%) and Hawaii (46%).
- The median total delinquency rate at federally insured credit unions was 0.7% nationally in the third quarter of 2016, down slightly from 0.8% a year earlier. At the end of the third quarter, the median delinquency rate was lowest in New Hampshire and Nevada (both 0.3%) and highest in New Jersey (1.7%), followed by Delaware and Louisiana (both 1.3%), NCUA said.