Iowa Credit Unions post strong loan and asset growth in 2013
DES MOINES, IA (March 11, 2014) — The National Credit Union Administration (NCUA) released the Quarterly U.S. Map Review including Iowa credit union performance metrics, for the fourth quarter of 2013. According to the December 31, 2013 report, Iowa credit unions are ranked second in the nation in annual loan growth and annual asset growth. Iowa credit unions also posted strong share and deposit growth.
Key Iowa credit union findings in the NCUA report include:
- Second-fastest growth compared to credit unions nationally in total loans for 2013. Total Iowa credit union loans and leases increased 13.6 percent to $8.2B in 2013, compared with an 8 percent increase nationwide.
- Total assets stand at $11.8B. This is a 6.6 percent increase over December 2012. Nationally, federally insured credit unions’ total assets grew by $5.3B in the fourth quarter and $40B for the year, to reach just more than $1.06T.
- Experienced 6.6 percent growth in share and deposits to $10.2B. Nationally, share and deposit accounts at credit unions grew 3.7 percent to $910B.
- Iowa membership increased 1.2 percent to 1,015,287 over the past 12 months, adding an additional 12,463 members since December 2012. Nationally, membership in federally insured credit unions grew 2.6 percent to more than 96.3M.
“Iowa credit unions are strong and healthy, and continue to be leaders in the industry,” said Patrick S. Jury, CEO/President of the Iowa Credit Union League. “Our positive growth in credit union membership, loans and deposits, affirms that Iowa consumers desire to conduct business with not for profit financial cooperatives. Our member-owned, locally controlled, cooperative system allows members to contribute to the success of their own well-being and their community.”
Callahan & Associates released the Quarterly Performance Summary comparing Iowa credit unions to credit unions nationally for the fourth quarter of 2013. According to the December 31, 2013 report, credit unions in Iowa posted a strong financial performance, exceeding most national trends. One example is that Iowa credit unions report delinquency at 41 basis points. Iowa credit unions have a net charge-off ratio below the national credit union, national bank and Iowa savings bank averages.
Key Iowa credit union findings in the Callahan & Associates report include:
- Iowa credit union earnings rose by 11.7 percent to $120,119,010 in 2013 compared to $107,532,312 in 2012.
- The ROA in 2013 was 1.05% compared to 1.02% in 2012.
- Credit union industry employment in Iowa grew by 93 full time positions to 2,817 in 2013 compared to 2,724 in 2012.
- The average member relationship in Iowa credit unions (the outstanding combined loan and share balances per member, excluding business loans) increased by 7.7 percent to end the year at $17,257.
- Originated $2.4B in consumer loans in 2013, the highest amount on record. Used auto loan balances in Iowa increased 13.2 percent and new autos rose 20.6 percent for 2013.
- Total revenue for Iowa credit unions increased 1.7 percent annually to more than $587M in 2013. Nationally, income was down 1.6 percent from the previous December.
- The average net interest margin (the difference between interest earned on loans and investments and interest paid on deposits) fell to 2.97 percent in the fourth quarter from 3.07 percent a year earlier for Iowa credit unions. Nationally, net interest margin fell to 2.81 percent from 2.94 percent.
- Six Iowa credit unions merged in 2013. Nationally, 273 credit unions merged and/or dissolved over the same time period. Nationally, there are 6,687 credit unions and of those, 115 are domiciled in Iowa as of December 31, 2013.
Click to download the full NCUA Quarterly U.S. Map Review.
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 www.facebook.com/iowacreditunions.To learn more about credit unions, visit www.ASmarterChoice.org.