NCUA: state-level analysis shows accelerating credit union loan growth
North Dakota, Idaho Strong in Several Measures in Quarterly U.S. Map Review
ALEXANDRIA, VA (December 9, 2014) — State-level data compiled by the National Credit Union Administration shows the median rate of loan growth continuing to rise at federally insured credit unions in the year ending Sept. 30, 2014.
Overall, the median return on average assets was higher than the previous year. Share and deposit and asset growth both slowed from a year earlier. While membership at federally insured credit unions increased, that growth was in larger credit unions, while smaller credit unions saw declines.
Median Loan Growth Rate Picks Up; Idaho, Arizona Lead
Nationally, the median growth rate for loans outstanding was 3.5 percent during the year ending in the third quarter of 2014, up from the 1.8 percent median growth rate in the year ending in the third quarter of 2013. The highest median growth rates for loans were in Idaho (9.5 percent) and Arizona (9.2 percent). No state showed negative median loan growth rate over the year. Kansas had the lowest growth rate (0.3 percent).
Median Loan-to-Share Ratio Rises to 60 Percent
Nationally, the median ratio of loans outstanding to total shares and deposits was 60 percent at the end of the third quarter of 2014 compared to 58 percent at the end of the third quarter of 2013. The median loan-to-share ratio was highest among credit unions in Idaho (86 percent) and lowest in Hawaii (42 percent).
Median Asset Growth Rate 1.4 Percent
The median asset growth rate at federally insured credit unions was 1.4 percent nationally in the year ending in the third quarter of 2014. The median growth rate for assets was 2.0 percent during the year ending in the third quarter of 2013. The median growth rate was highest in North Dakota (5.7 percent) and South Dakota (4.2 percent).
In four states, median asset growth over the year was negative, indicating at least half of federally insured credit unions in those states had fewer assets at the end of the third quarter of 2014 than a year earlier. New Jersey (-0.8 percent) had the lowest median asset growth rate.
Utah, North Dakota Record Highest Aggregate Returns on Average Assets
Nationally, the aggregate return on average assets among all federally insured credit unions was 83 annualized basis points in the first three quarters of 2014 compared to 80 basis points the previous year. The aggregate return on average assets was positive in every state, with Utah having the highest (161 basis points), followed by North Dakota (109 basis points). Connecticut (28 basis points) and New Jersey (34 basis points) posted the lowest aggregate return on average assets.
Median Shares and Deposits Growth Rate Slower; Six States See Decline
Nationally, federally insured credit unions’ median growth rate for shares and deposits was 1.1 percent in the year ending in the third quarter, down from a median growth rate of 2.2 percent the previous year. The median growth rate for shares and deposits was highest in North Dakota (5.2 percent) and Wyoming (4.8 percent). The median growth rate for shares and deposits was negative in six states. New Jersey (-1.2 percent) showed the largest decline.
Trend in Median Membership Growth Continues; Larger Credit Unions See Gains
Overall, membership in federally insured credit unions continued to grow in the third quarter of 2014, primarily due to membership growth at credit unions with assets larger than $500 million. However, the median membership growth rate was -0.4 percent, identical to the rate a year earlier.
Nationally, 54 percent of credit unions had fewer members at the end of the third quarter than a year before. Idaho (2.7 percent) had the highest median membership growth rate, followed by Alaska and South Dakota (both 1.4 percent). In 29 states, median membership growth was negative, with Pennsylvania, Montana and New Jersey (all -1.5 percent) ranking the lowest.
Median Delinquency Rate Stable
The median delinquency rate at federally insured credit unions was 0.9 percent nationally in the third quarter of 2014, slightly below the 1.0 percent rate a year earlier. The District of Columbia (1.7 percent) posted the highest median delinquency rate, followed by New Jersey (1.6 percent). North Dakota (0.2 percent) had the lowest median delinquency rate at the end of the third quarter.
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 United States, 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.