HARRISBURG, Penn.– The total assets of credit unions in Pennsylvania have surpassed the $50 billion threshold for the first time.
The Commonwealth now ranks No. 9 in the nation for total asset size, according to the Pennsylvania CU Association.
The results are based on data compiled by Callahan & Associates in its Pennsylvania Profile report, which showed 365 credit unions operating in Pennsylvania and serving more than 4.2 million members. The average member relationship (the outstanding combined loan and share balances per member, excluding business loans) in the state was $17,169, which was $678 more than what was reported in the previous year, according to the PCUA.
The Data Points
Among the other data points released:
- Despite a 0.7% decrease in loan originations, the overall loan portfolio at Pennsylvania credit unions expanded year-over-year. Loan balances totaled over $33.0 billion, up 8.5% annually, as of March 2019.
- The fastest growing loan product was new auto loans, which increased 15.2% year-over-year. Used auto loans followed, increasing balances 12.3% over the past 12 months.
- Industrywide, loan growth was 7.9% and outstanding balances reached nearly $1.1 trillion.
- Pennsylvania credit unions reported a net charge-off ratio of 0.44%, below the national average of 0.57%. Credit card delinquency in the state improved 3 basis points year-over-year to 0.83%, well below the industry average of 1.26%.
- A growing loan portfolio coupled with rising interest rates has led to a strong increase in interest income in the state, the PCUA said. Loan interest income, the largest component of total income, posted 14.4% growth from March 2018. Interest income from investments was up 35.6% despite just a 2.0% increase in the investment portfolio.
- Credit unions in Pennsylvania reported strong earnings, with total income increasing 13.5% to $621.2 million, led by growth in interest income from loans and investments.