ALEXANDRIA, Va.–Credit unions in Utah and Maine led the way in median asset growth during the year ending Sept. 30, while asset growth was negative among credit unions in New Jersey, Louisiana, and Kansas, according to NCUA.
The agency’s just-released NCUA Quarterly U.S. Map Review examines credit union performance at the state level.
Overall, NCUA said the data show median growth rate among all CUs was 5.9% over the year ending in the third quarter of 2018, with median loan growth positive in every state. Median loan growth was strongest in Minnesota (9.6%), followed by Washington (9.4%), while it was slowest in New Jersey (1.1%) followed by Connecticut (2.7%).
In terms of membership, over the year ending in the third quarter of 2018, credit unions headquartered in Alaska (3.8%) and Oregon (3.0%) posted the highest median membership growth.
Here’s a look at how credit unions across the country performed in the year ended Sept. 30, according to the report:
- Nationally, median asset growth over the year ending in the third quarter of 2018 was 1.7%. In other words, half of all federally insured credit unions had asset growth at or above 1.7% and half had asset growth of 1.7% or less. In the year ending in the third quarter of 2017, the median growth rate in assets was 2.9%.
- Over the year ending in the third quarter of 2018, median asset growth was highest in Utah (5.6%), followed by Maine (5.0%).
- Median asset growth was negative in New Jersey (-1.2%), Louisiana (-0.6%), and Kansas (-0.4%) over the year ending in the third quarter of 2018. At the median, assets grew the least in Arkansas (0.2%) and North Carolina (0.3%).
- Nationally, median growth in shares and deposits over the year ending in the third quarter of 2018 was 1.3%. In the year ending in the third quarter of 2017, the median growth rate in shares and deposits was 2.8%.
- Over the year ending in the third quarter of 2018, median growth in shares and deposits was highest in Idaho (6.3%) and Utah (6.0%).
- Median growth in shares and deposits was negative in six states over the year ending in the third quarter of 2018, led by New Jersey (-1.3%) and Kansas (-0.6%). At the median, shares and deposits were unchanged in Rhode Island and grew the least in North Dakota and Mississippi (both 0.1%).
Membership
- While overall membership in federally insured credit unions continued to grow during the year ending in the third quarter of 2018, at the median, membership was roughly unchanged. Membership was also unchanged at the median over the year ending in the third quarter of 2017. Overall, almost half of federally insured credit unions had fewer members at the end of the third quarter of 2018 than a year earlier. Credit unions with falling membership tend to be small; about 75% had less than $50 million in assets.
- Over the year ending in the third quarter of 2018, credit unions headquartered in Alaska (3.8%) and Oregon (3.0%) posted the highest median membership growth rates.
- In 13 states, the median membership growth rate for federally insured credit unions was negative. At the median, membership declined the most in the District of Columbia (-1.6%), followed by Illinois (-1.5%). At the median, membership was unchanged in New York, Tennessee, and Virginia.
Lending
- Nationally, the median growth rate in loans outstanding was 5.9% over the year ending in the third quarter of 2018. The median loan growth rate during the previous year was 5.0%.
- Over the year ending in the third quarter of 2018, median loan growth was positive in every state. Median loan growth was strongest in Minnesota (9.6%), followed by Washington (9.4%).
- The slowest median growth rate in loans outstanding was in New Jersey (1.1%) followed by Connecticut (2.7%).
Delinquencies
- At the end of the third quarter of 2018, the median total delinquency rate among federally insured credit unions was 66 basis points, compared to 72 basis points in the third quarter of 2017.
- At the end of the third quarter of 2018, the median delinquency rate was highest in New Jersey (144 basis points), followed by Mississippi (118 basis points).
- The median delinquency rate was lowest in Oregon (30 basis points), followed by North Dakota and New Hampshire (both 31 basis points).
Loan-To-Share Ratios
- Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 69% at the end of the third quarter of 2018. At the end of the third quarter of 2017, the median loans-to-shares ratio was 65%.
- The median loans-to-shares ratio was highest in Idaho (92%), followed by Vermont (89%).
- The median loans-to-shares ratio was lowest in Delaware (49%) followed by Hawaii (50%).
ROA
- Nationally, the median annualized return on average assets at federally insured credit unions was 60 basis points during the first three quarters of 2018, compared to 39 basis points during the same period of 2017.
- Nevada (110 basis points) had the highest median return on average assets during the first three quarters of 2018, followed by Oregon (93 basis points).
- New Jersey (37 basis points) had the lowest median return on average assets, followed by Massachusetts (41 basis points).
Net Income
- Nationally, 88% of federally insured credit unions had positive net income during the first three quarters of 2018, compared to 81% during the first three quarters of 2017.
- At least 70% of credit unions in every state had positive net income during the first three quarters of 2018.
- The share of federally insured credit unions with positive net income was highest in Vermont and New Hampshire (both 100%), followed by Maine, Wisconsin, and Oregon (all 98%).
- The share was lowest in the District of Columbia (74%), followed by Louisiana (76%).