ALEXANDRIA, Va.—A new NCUA report reveals that in 18 states the median membership growth rate for federally insured credit unions was negative in Q2.
Meanwhile, Washington showed the highest median loan growth during the second quarter, while Idaho led the way in asset growth, according to NCUA’s second quarter state-level data.
Overall, federally insured credit unions generally saw continued positive trends in the second quarter of 2018, according to the latest NCUA Quarterly U.S. Map Review.
Nationally, overall membership continued to grow, concentrated in larger credit unions. Eighty-five percent of federally insured credit unions reported positive net income during the first half of 2018. Median loan growth was 5.4% and median asset growth was 2.1% during the year ending in the second quarter.
Data highlights:
Median Annual Asset Growth
• Nationally, median asset growth over the year ending in the second quarter of 2018 was 2.1%. “In other words, half of all federally insured credit unions had asset growth at or above 2.1% and half had asset growth of 2.1% or less. In the year ending in the second quarter of 2017, the median growth rate in assets was 3.9%,” NCUA said.
• Over the year ending in the second quarter of 2018, median asset growth was highest in Idaho (6.3%), followed by Maine (5.6%).
• Median asset growth was negative in Louisiana (-1.0%), New Jersey (-0.5%), Delaware (-0.2%), and Rhode Island (-0.1%) over the year ending in the second quarter of 2018. At the median, assets grew the least in Arkansas (0.1%) and Kansas (0.2%).
Median Annual Share And Deposit Growth
• Nationally, median growth in shares and deposits over the year ending in the second quarter of 2018 was 1.9%. In the year ending in the second quarter of 2017, the median growth rate in shares and deposits was 4.1%, the data show.
• Over the year ending in the second quarter of 2018, median growth in shares and deposits was highest in Maine (5.4%) and Idaho (5.2%).
• Median growth in shares and deposits was negative in Louisiana (-1.5%), New Jersey (-0.6%), Arkansas (-0.5%), and Rhode Island (-0.2%) over the year ending in the second quarter of 2018. At the median, shares and deposits grew the least in Maryland (0.1%) and North Carolina (0.3%).
Median Annual Membership Growth
• While overall membership in federally insured credit unions continued to grow during the year ending in the second quarter of 2018, at the median, membership was roughly unchanged. Membership declined 0.1% at the median over the year ending in the second quarter of 2017. Overall, almost half of federally insured credit unions had fewer members at the end of the second 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, NCUA said.
• Over the year ending in the second quarter of 2018, credit unions headquartered in Alaska and South Dakota posted the highest median membership growth rate (both 2.6%), followed by credit unions headquartered in Oregon (2.5%).
• In 18 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 (-2.9%), followed by Pennsylvania (-1.2%).
Median Annual Loan Growth
• Nationally, the median growth rate in loans outstanding was 5.4% over the year ending in the second quarter of 2018. The median loan growth rate during the previous year was 4.4%.
• Over the year ending in the second quarter of 2018, median loan growth was positive in every state. Median loan growth was strongest in Washington (10.5%), followed by Colorado (10.3%).
• The slowest median growth rate in loans outstanding was in New Jersey (0.7%), followed by Arkansas (1.6%), the report indicates.
Median Total Delinquency Rate
• At the end of the second quarter of 2018, the median total delinquency rate among federally insured credit unions was 62 basis points, compared to 69 basis points in the second quarter of 2017.
• At the end of the second quarter of 2018, the median delinquency rate was highest in New Jersey (143 basis points), followed by Mississippi (112 basis points).
• The median delinquency rate was lowest in Oregon (25 basis points), followed by Colorado (33 basis points).
Median Loans To Shares Ratio
• Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 66% at the end of the second quarter of 2018. At the end of the second quarter of 2017, the median loans-to-shares ratio was 63%.
• The median loans-to-shares ratio was highest in Idaho (91%), followed by Vermont and Alaska (both 88%).
• The median loans-to-shares ratio was lowest in Delaware (49%), followed by Pennsylvania (50%).
Median Return On Average Assets
• Nationally, the median annualized return on average assets at federally insured credit unions was 52 basis points during the first half of 2018, compared to 36 basis points during the first half of 2017.
• South Carolina (91 basis points) had the highest median return on average assets during the first half of 2018, followed by Nevada (84 basis points).
• New Jersey (27 basis points) had the lowest median return on average assets, followed by Massachusetts (31 basis points).
Share of CUs With Positive Net Income
• Nationally, 85% of federally insured credit unions had positive net income during the first half of 2018, compared to 80% during the first half of 2017.
• At least 65% of credit unions in every state had positive net income during the first half of 2018.
• The share of federally insured credit unions with positive net income was highest in Vermont and Nevada (both 100%), followed by Oregon (98%).
• The share was lowest in the District of Columbia (66%), followed by Louisiana (69%), the data show.