ALEXANDRIA, Va.–Credit unions in Nevada and Washington State led the nation in loan growth during the second quarter, while Alaska led in membership growth.
Meanwhile, Pennsylvania not only showed the slowest growth in lending, it also reported negative membership growth during Q2, according to NCUA’s latest Quarterly U.S. Map Review, which breaks out CU performance by state.
Overall, nationally, median loan growth in federally insured credit unions was 4.3% during the year ending in the second quarter. In the same period, median asset growth was 3.2%, the median rate of growth in deposits and shares was 3.3%, and the median loans-to-shares ratio rose to 62%, NCUA said.
Among the data released as part of the Map Review:
Median Loan Growth Positive in Every State; Nevada, Washington Highest. The highest median growth rates for loans were in Nevada (10.0%) and Washington (9.2%). Median loan growth was slowest in Pennsylvania (0.8%) and the District of Columbia (1.3%).
Median Asset Growth Rate 3.2%; South Carolina, Nevada Lead. Median asset growth was 3.2% nationally in the year ending in the second quarter of 2016, up from 1.9% a year earlier. Median asset growth was fastest in South Carolina and Nevada (both 6.4%). Median asset growth was slowest in Louisiana (0.8%) and Connecticut (0.9%), NCUA reported.
Idaho, Washington Report Highest Median Growth Rates in Shares and Deposits. At the median, shares and deposits rose in every state over the year ending in the second quarter, according to the agency. The median growth rate in shares and deposits was 3.3%, up from 1.8% a year earlier.
The median growth rate in shares and deposits was highest in Idaho (7.3%) and Washington (6.5%). The median growth rate in shares and deposits was lowest in Louisiana (0.7%) and the District of Columbia (0.9%).
More Credit Unions Reporting Positive Net Income
Nationally, 79% of federally insured credit unions had positive net income during the first half of 2016, up from 77% in the first half of 2015, NCUA said. At least half of credit unions in every state had positive net income in the first half of this year. The share of credit unions with positive net income was highest in Nevada (100%) and North Dakota (95%). The share was lowest in Delaware (55%), followed by Arkansas, New Jersey, and the District of Columbia (all 66%).
Vermont, Nevada Lead on Annualized Returns on Average Assets. Nationally, the median annualized return on average assets at federally insured credit unions was 35 basis points in the first half of 2016, up from 33 basis points in the first half of 2016.
Vermont (72 basis points) had the highest median return on average assets in the first half of the year, followed by Nevada (71 basis points). Delaware (6 basis points) reported the lowest median return, followed by New Jersey and the District of Columbia (both 18 basis points).
Idaho and Alaska Again Report Highest Median Loans-to-Shares Ratios. According to NCUA, nationally, the median ratio of loans outstanding to total shares and deposits was 62% at the end of the second quarter of 2016, compared to 60% a year earlier. The median loans-to-shares ratio was highest among credit unions in Idaho and Alaska (both 86%). The median loans-to-shares ratio was lowest in Delaware (44%) and Hawaii (45%).
Median Total Delinquency Rate Down Slightly. The median total delinquency rate at federally insured credit unions was 0.7% nationally in the second quarter of 2016, down from 0.8% a year earlier. At the end of the second quarter, the median delinquency rate was lowest in New Hampshire (0.3%) and highest in New Jersey (1.7%), followed by Delaware and the District of Columbia (both 1.3%).
Membership Growth Continues in Larger Credit Unions. NCUA noted that overall, credit union membership continued its growth during the year ending in the second quarter of 2016; however, at the median, it was unchanged. Zero median membership growth means that, overall, 50% of federally insured credit unions had fewer members at the end of the second quarter of 2016 compared with a year earlier, while 50% had more members. The median membership growth rate was negative 0.3% in the previous year, NCUA said.
Falling membership continued to be concentrated in smaller credit unions. Approximately 75% of credit unions with declining membership had assets of less than $50 million.
Alaska (3.1%) had the highest median membership growth rate over the year ending in the second quarter of 2016, followed by Idaho (2.4%). Median membership growth was negative in 18 states. At the median, Pennsylvania membership declined the most (-1.6%).