Credit Unions in Alabama and Florida have strong showing for Q2 2018
TALLAHASSEE,, FL (November 20, 2018) — Credit unions based in Alabama and Florida saw growth in several areas during the second quarter of 2018.
“Credit unions in Alabama and Florida continue to add members, assets, and loans, as well as help their members save money,” said LSCU & Affiliates President/CEO Patrick La Pine. “What we are seeing is more people are searching for a local financial institution that has their best interest in mind. Once a person joins a credit union, not only are they a member owner, but they experience outstanding personalized service and realize the credit union difference.”
Alabama’s more than two million members demonstrated a 2.5 percent growth in credit union membership, higher than the national average and up from 1.1 percent in Q4 of 2017. Average shares per member grew to almost $10,000, while the average loan balance per member rose to $5,856 in the same comparison time period.
The measure of a strong credit union is its return on assets (ROA) and net worth ratio. To be considered well capitalized, a credit union should have a 7 percent net worth ratio. Credit unions in Alabama have a collective net worth ratio of 11.99 percent, which is higher than the national credit union average of 11.05 percent.
Alabama saw an increase in average assets from $195.9 million in December 2017 to $203.5 million in June 2018. Delinquencies on loans improved from 0.80 percent to 0.64 percent, putting Alabama below the national level of delinquencies at 0.67 percent. Net charge offs for loans improved from 0.61 percent at the end of the year last year to 0.57 percent last quarter, bettering the national level of 0.59 percent.
Total loans for Alabama credit unions also exceeded national numbers with 6.1 percent in the state compared to 4.7 percent nationally. The investment yield in Alabama was up from 1.53 percent last year to 2.04 percent in Q 2, higher than the national average of 1.93 percent. The net income (ROA) of Alabama credit unions rose from 0.58 last year to 0.86 in the second quarter of 2018.
Florida credit unions are a cut above when it comes to average assets. At $488.1 million in Q2, the credit unions are up from $468.1 million in December 2017 and almost double the national average assets of $258.5 million.
Delinquent loan rates have declined from 0.67 percent in 2017 to 0.49 percent. Net charge offs are better than the national average of 0.59 at 0.58 percent.
In addition to minimizing delinquencies, Florida credit unions also are ahead of the national curve on total loans at 4.9 percent in Q2. Nationally, that number is 4.7 percent. Member business loans have taken a significant leap over the state’s 2.0 percent since Q4 2017 to 7.8 percent in Q2 – that’s more than 2 percent over the national number of 6.6 percent. Total savings in Florida also rose above national numbers at 4.5 percent compared to the U.S. total of 4.1 percent.
Credit unions in Florida have a collective net worth ratio of 10.8 percent in Q2 2018, an increase from 10.76 percent in the previous quarter. Earnings show a boost with a net income of 0.92 percent for the quarter compared to 0.77 percent in 2017 in Florida and showing better than the national rate of 0.88 percent.
The investment yield in Florida is up from 1.49 percent in 2017 to 1.73 percent in Q2. The loan to asset ratio rose from 67.9 percent to 68.4 percent, and business loans/assets were up from 3.6 percent to 3.7 percent over the last quarter. SD penetration is at 69.5 percent compared to the national average of 52.6. Florida also showed a higher number of members per branch at 5,887 compared to 5,478 nationally.
2018 Q2 numbers at a glance
- Average shares per member grew to almost $10,000
- Total loans at 6.1 percent compared to 4.7 percent nationally
- Net income (ROA) of up from 0.58 last year to 0.86
- Member business loans up 5 percent over Dec. 2017
- Net income at 0.92 percent – higher than national average of 0.88
- SD Penetration at 69.5 percent compared to national level of 52.6 percent
Patrick La Pine
About League of Southeastern Credit Unions & Affiliates (LSCU)
The League of Southeastern Credit Unions & Affiliates represents 302 credit unions throughout Alabama, Florida, and Georgia and has a combined total of more than $175 billion in assets and more than 11.6 million members. LSCU provides advocacy, compliance services, education and training, cooperative initiatives, and communications. For more information, visit www.lscu.coop. Follow LSCU on LinkedIn, Twitter, and Facebook.