NCUA: State data show strong loan, membership growth in fourth quarter 2013

ALEXANDRIA, VA (March 5, 2014) – A new analysis of state-level data by the National Credit Union Administration shows strong loan and membership growth at federally insured credit unions in the year ending Dec. 31, 2013.

Growth in assets and shares continued, but at a slower pace than in the previous year.

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 also summarizes two key state-level economic indicators: unemployment rates and home price changes. This edition of the review includes data on median loan growth and median return on average assets to facilitate comparisons of typical credit unions across states.

Annualized Loan Growth 8 Percent: Fastest in Idaho, Iowa and Virginia

Nationally, total loans outstanding grew 8.0 percent in the year ending in the fourth quarter of 2013, up from 4.6 percent the previous year. Loans grew in all states except Massachusetts, which saw a decline of 0.1 percent. Idaho (16.7 percent), followed by Iowa and Virginia (both 13.6 percent), posted the largest gain.

Membership Growth Out-Paces 2012: Idaho and Virginia on Top

Nationally, membership in federally insured credit unions rose 2.6 percent to 96.3 million in the year ending in the fourth quarter of 2013, a somewhat faster pace than in the year ending in the fourth quarter of 2012. Membership grew at a faster rate in 27 states, with Idaho (8.1 percent) and Virginia (8.0 percent) reporting the fastest growth. Membership declined in eight states, with Connecticut leading with a 1.5 percent contraction.

Utah and Washington Show Highest Returns on Average Assets

Nationally, the return on average assets (ROAA) at federally insured credit unions was 78 basis points in 2013 compared to 85 basis points in 2012. Compared to 2012, ROAA in 2013 was higher in 11 states. Utah had the highest ROAA (145 basis points), followed by Washington (116 basis points). Connecticut (26 basis points) and the District of Columbia (28 basis points) posted the lowest ROAA.

Assets Increase, but at a Slower Rate: Idaho and Iowa Post Fastest Growth

Assets in federally insured credit unions rose 3.9 percent nationally in the year ending in the fourth quarter of 2013 after rising 6.2 percent in the previous year. Federally insured credit unions in Idaho and Iowa had the fastest overall growth in total assets in 2013. Assets fell 2.0 percent in Massachusetts, in part due to a conversion of a large credit union to a bank, and 0.4 percent in New Jersey.

Shares and Deposits Rise 3.7 Percent Nationally, but Fall in Some States

Federally insured credit unions’ shares and deposits grew 3.7 percent nationally in 2013, down from a 6.1 percent rise the year before. Idaho posted the largest gain in the country. Shares and deposits fell in Massachusetts and Maryland. The decline in Massachusetts resulted primarily from the conversion of a large credit union to a bank.

Delinquency Rate Stays Low

The delinquency rate at federally insured credit unions was 1.0 percent nationally in 2013, a decline from 1.2 percent the year before. Delaware and New Jersey posted the highest total delinquency rates, while North Dakota and New Hampshire had the lowest.

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 96 million account holders in all federal credit unions and the overwhelming majority of state-chartered credit unions.

More News