ARLINGTON, Va.—Credit union share growth remains faster than normal but slowed dramatically in the second quarter, while share growth is still rising on a year-over-year basis and loan growth has accelerated, according to a new report released by NAFCU.
"There are a number of positive industry trends at the moment, highlighted by moderating share growth, increasing member growth, and rock-solid loan performance," said NAFCU Chief Economist and Vice President of Research Curt Long, in response to the second quarter data from the trade association’s latest CU Industry Trends Report. "However, net interest margins are now well below where they were following the financial crisis and will continue to place stress on credit union earnings for some time to come. It is incumbent on policymakers to eliminate unnecessary regulatory burdens on credit unions."
Key Data Points
Other key data from NAFCU's report:
• Member growth accelerated over the first half of 2021
• Both bank and credit union charge-offs are at historic lows
• Net interest margins are still sinking, but return on average assets (ROA) is up thanks to reductions in provision for loan and lease loss expense
• As a share of net worth, concentrations in long-term investments are at historic highs
• 1st mortgage loan originations moderated in Q2 but HELOC originations picked up
State-level results of note include:
• Montana and Wyoming had the highest overall loan growth
• Nevada, Iowa, Alabama, Georgia, Montana, Illinois, and Wyoming had the highest membership growth
• Idaho, Utah, Iowa, Vermont, and Wisconsin had the highest ROA