NCUA: state data show median growth rate for loans increases in second quarter
Growth in assets and shares slows, delinquencies steady
ALEXANDRIA, VA (September 9, 2014) — A new analysis of state-level data by the National Credit Union Administration shows an increased median rate of loan growth at federally insured credit unions in the year ending June 30, 2014.
Overall median growth rates for assets and shares slowed from the previous year, while delinquencies remained steady. The median loan-to-share ratio increased, while the median return on average assets was slightly lower than the year before.
The NCUA Quarterly U.S. Map Review, prepared by NCUA’s Office of the Chief Economist and available here, tracks performance indicators for federally insured credit unions in the 50 states and the District of Columbia. The review now shows median growth rates, meaning half of all credit unions will have higher rates and half lower. When comparing indicators across states, the use of medians is preferable because medians, unlike state aggregates, are less influenced by the performance of very large institutions. The review includes two key state-level economic indicators: unemployment rates and home price changes.
Median Growth Rate for Loans Accelerates from 2013, Arizona, Idaho Lead
Nationally, the median growth rate for loans was 3.2 percent during the year ending in the second quarter of 2014, up from the 1.0 percent median growth rate in the year ending in the second quarter of 2013. The highest median growth rate for loans was in Arizona (8.8 percent), followed by Idaho (8.6 percent). Delaware was the only state in which median growth for loans was negative over the past year (-2.8 percent).
Median Loan-to-Share Ratio at 58 Percent
Nationally, the median ratio of loans outstanding to total shares and deposits was 58 percent at the end of the second quarter of 2014 compared to 56 percent at the end of the second quarter of 2013. The median loan-to-share ratio was highest among credit unions in Idaho (81 percent) and was lowest in Delaware (40 percent).
Utah, Iowa, North Dakota Record Highest Returns on Average Assets
Nationally, aggregate annualized return on average assets across all federally insured credit unions was 81 basis points in the first half of 2014 compared to 84 basis points the previous year. Median return on average assets was 30 basis points. Aggregate return on average assets was positive in every state, with Utah having the highest (136 basis points), followed by Iowa and North Dakota (106 basis points). New Jersey and Connecticut (both 26 basis points) posted the lowest return on average assets.
Median Shares and Deposits Growth Rate Slows, and 8 States See Decline
Nationally, federally insured credit unions’ median growth rate for shares and deposits was 1.2 percent in the year ending in the second quarter, down from a median growth rate of 2.6 percent in the previous year. North Dakota (4.2 percent) posted the largest gain of any state. The median growth rate for shares and deposits declined in eight states, with Connecticut and New Jersey showing the greatest declines (both -0.9 percent).
Trend in Median Membership Growth Continues
Overall, membership in federally insured credit unions continued to grow in the second quarter of 2014, primarily due to aggregate membership growth at large credit unions. The median membership growth rate was -0.4 percent, matching the rate from the previous year. Nationally, 54 percent of credit unions had fewer members at the end of the second quarter than a year before. Alaska (2.3 percent) had the highest median membership growth rate, followed by Idaho (2.0 percent). In 25 states, median membership growth was negative, with New Jersey (-1.8 percent) showing the biggest decline.
Median Asset Growth Rate Slows to 1.3 Percent
The median asset growth rate at federally insured credit unions was 1.3 percent nationally in the year ending in the second quarter of 2014. The median growth rate for assets was 2.5 percent during the year ending in the second quarter of 2013. The median growth rate was highest in Wyoming (4.8 percent) and Idaho (4.7 percent).
In seven states, median asset growth rate over the year was negative. New Jersey and Delaware (both -0.9 percent) had the greatest declines.
Median Delinquency Rate Steady from 2013
The median delinquency rate at federally insured credit unions was 0.9 percent nationally in the second quarter, the same rate recorded at the end of the second quarter of 2013. New Jersey and the District of Columbia (both 1.7 percent) posted the highest median delinquency rates. Colorado and North Dakota (both 0.4 percent) had the lowest median delinquency rates.
NCUA is the independent federal agency created by the U.S. Congress to regulate, charter and supervise federal credit unions. With the backing of the full faith and credit of the U.S. Government, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of more than 98 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions. At MyCreditUnion.gov and Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues..