Credit unions in Alabama, Florida show impressive trends in 2018
New records set in member business loans, number of members, and assets
TALLAHASSEE,, FL (March 19, 2019) — Credit unions in Alabama and Florida are making great strides in loan growth and in increasing assets based on the NCUA’s Call Report Data for 2018.
“More and more Alabamians and Floridians are choosing credit unions for their financial solutions,” said Patrick La Pine LSCU & Affiliates, president/CEO. “Whether it is providing lower interest loans or offering higher earnings on deposits, credit unions are better able to meet today’s consumer needs because of their not-for-profit status and cooperative business model.”
Average assets in Alabama increased to $205 million in 2018, up from just under $196 million in 2017. Membership growth also more than doubled from 1.1 percent in 2017 to 3.6 percent in 2018
Member business loans rocketed to 18.5 percent in 2018, blasting past the 12 percent national average. Total loans rose to an impressive 10.7 percent, exceeding the national average of 9 percent and reflecting a growth of one full percent over the strong 2017 growth rate of 9.7 percent.
The state’s delinquent loan rates were down to 0.76 percent, almost in line with the national average of 0.71 percent and reduced from a previous 0.80 percent in 2017. Net charge offs also improved from 0.61 percent in 2017 to 0.58 percent in 2018. The national rate is just slightly better at 0.55 percent.
Total savings grew from 3.6 percent in 2017 to 4.4 percent during 2018. Net income grew to 0.78 percent in 2018, up from 0.58 over 2017.
The investment yield in Alabama was at 2.16 percent, surpassing the national average of 2.11 percent and showing a steady increase in the state over the year end quarters in 2016 (1.45 percent) and 2017 (1.53 percent). Net worth ratio was on a similarly impressive trajectory at 12.26 percent, exceeding the national average of 11.33 percent and increasing from 2017’s number of 11.47 percent.
Loans/Assets is another strong performing area in Alabama, up more than seven percent over 2017, posting 55.3 percent in 2018. That number shows increasing momentum year over year with 45.9 percent in 2016.
In Florida, average assets increased to $507.5 million in the state – almost double the national average of $267.8 million, up from $468.1 million in 2017.
The state’s delinquent loan rates were down to 0.57 percent, lower than the national average of 0.71 percent and reduced from a previous 0.67 percent in 2017. Total loans rose 10.5 percent during the year, compared to 9.0 percent average growth nationally for credit unions. Total assets grew in Florida 6.8 percent during the year, faring well in comparison to the national rate of 5.4 percent.
Member business loans continued exponential growth for the year, tracking an incredible 16.6 percent during 2018 up from 2 percent in 2017 and exceeding the national average of 12 percent.
2018 numbers at a glance for Alabama include:
- The investment yield of 2.16 percent surpassed the national average of 2.11 percent and showed a steady increase in the state over 2016 (1.45 percent) and 2017 (1.53 percent).
- Net worth ratio climbed to 12.26 percent, exceeding the national average of 11.33 percent.
- Membership growth more than doubled from 1.1 percent to 3.6 percent.
- Average assets increased to $205 million in 2018, up from just under $196 million in 2017.
- Total savings grew 3.6 percent in 2017 to 4.4 percent in 2018.
- Total loans rose to an impressive 10.7 percent, exceeding the national average of 9 percent.
- Member business loans jumped from being down in 2017 -2.8 percent to 18.5 percent for 2018, blasting past the 12 percent national average.
2018 numbers at a glance for Florida include:
- Average assets per credit union are at $507.5 million, up from $468.1 million in 2017, compared to a national average of $267.8 million.
- Total assets for the year are at 6.8 percent compared to the 5.4 percent nationally.
- Delinquent loan percentages calculated at 0.57 percent are lower than the national average of 0.71 percent.
- Member business loans grew during the year to 16.6 percent from 2 percent for the previous year and exceeded the national average of 12 percent.
- SD penetration increased to 69.7 percent for 2018, more than the national average of 57.8 percent.
- Number of members per branch increased to 5,965 from 5,742 in 2017 and were higher than the national average of 5,570.
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.