DES MOINES, IA (December 17, 2014) — Callahan & Associates released its Quarterly Performance Summary for the third quarter of 2014, which compares Iowa credit unions to credit unions nationally. According to the September 30, 2014 summary, credit unions in Iowa reported strong financial performance, posting annual loan growth of 13.5 percent. This indicates a strengthening economy as consumer spending continues to drive the bulk of credit union lending activity, particularly in new auto loans where there was 21.7 percent loan growth. Notably, Iowa credit union loan growth is nearly three times faster than the growth rate posted by national banks. In addition, Iowa credit union loan and share growth is higher than Iowa banks, Iowa savings institutions and national credit unions.
Key Iowa credit union findings in the Callahan report include:
- Total loans increased 13.5 percent to $9.0B, compared with a 10.1 percent increase to $703.6B nationwide.
- Experienced 4.3 percent growth in share and deposits to $10.5B. Nationally, share and deposit accounts at credit unions grew 3.7 percent to $951.3B.
- Total assets stand at $12.5B. This is a 6.8 percent increase over September 2013. Nationally, federally insured credit unions’ total assets stand at $1.1T. This is a 4.8 percent increase over third quarter 2013.
- The ROA for third quarter 2014 stands at 1.09 percent. This reflects a 3 basis points increase from the third quarter of 2013.
- Originated $2.1B in consumer loans for the first nine months of 2014, up $276.3M from the third quarter 2013. Iowa credit unions originated $1.0B in first mortgages, this is a 25.4 percent decline from September 2013 activity. This decrease is less than the 29.8 percent decline nationally reported. The decline is due to higher mortgage rates resulting in significantly lower refinance activity and mortgage originations.
- Iowa credit unions have a net charge-off ratio of .37 percent. This rate is well below the national credit union average of .48 percent. Delinquency dropped 3 basis points to .94 percent.
- Membership increased 1.9 percent to 1,036,758 members, adding almost 19,000 members in the last 12 months. Nationally, membership in federally insured credit unions grew 2.9 percent to more than 99.9M. While Iowa’s growth is slower than the national average, one reason is a continued focus on efficiency and the purging of dormant accounts.
- The average net interest margin (the difference between interest earned on loans and investments and interest paid on deposits) increased 12 basis points from September 30, 2013 to reach 3.03 percent through third quarter of 2014.This is 18 basis points higher than the national average of 2.85 percent.
- Eight Iowa credit unions merged in the first nine months of 2014. Nationally, 208 credit unions have merged and/or dissolved over the same time period. Nationally, there are 6,479 credit unions and of those, 107 are domiciled in Iowa as of September 30, 2014.
“The increase in loan growth at Iowa credit unions is a reflection of consumers’ confidence in the economy and their corresponding willingness to buy bigger ticket items this year,” said Patrick S. Jury, President and CEO, ICUL. “The consistent growth in membership and loans is reflective of how Iowa credit unions are working to improve the financial lives of their members.”
About the Iowa Credit Union League
The Iowa Credit Union League is the trade association that represents the interests of Iowa’s credit unions and their more than one million members. Credit unions are not-for-profit, financial cooperatives owned and operated by their members. Iowans use their credit union membership to receive higher interest rates on savings and lower interest rates on loans. For more information on ICUL and Iowa credit unions, visit www.IowaCreditUnions.com. Follow ICUL on Twitter at www.twitter.com/icul or on Facebook at http://www.facebook.com/iowacreditunions To learn more about credit unions, visit www.ASmarterChoice.org.