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NCUA: State-level data show credit unions’ loan growth continues

Asset Growth Rises, Delinquencies Steady, Deposit Growth Edges Higher

ALEXANDRIA, VA (March 12, 2015) — America’s credit unions continued to boost lending during the year ending Dec. 31, 2014, according to state-level data compiled by the National Credit Union Administration.

Nationally, median asset growth was up during 2014, with delinquencies holding steady. While overall membership increased, that growth was concentrated in larger credit unions. Smaller credit unions were more likely to lose members. Share and deposit growth was up, as was return on average assets.

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 includes two key state-level economic indicators: unemployment rates and home price changes.

Median Loan Growth Rate 3.8 Percent; Arizona, Idaho Strongest

Nationally, the median growth rate for loans outstanding was 3.8 percent during the year ending in the fourth quarter of 2014, up from the 2.5 percent median growth rate in the year ending in the fourth quarter of 2013. The highest median growth rates for loans were in Arizona (10.4 percent) and Idaho (9.7 percent). At the median, loan growth was zero in Delaware and -0.5 percent in the District of Columbia. Loan growth was positive in all other states.

Median Loan-to-Share Ratio Up Slightly

Nationally, the median ratio of loans outstanding to total shares and deposits was 61 percent at the end of the fourth quarter of 2014 compared to 59 percent at the end of the fourth quarter of 2013. The median loan-to-share ratio was highest among credit unions in Idaho (86 percent), followed by Wisconsin and Maine (both 80 percent). The median loan-to-share ratio was lowest in Hawaii (42 percent), followed by Delaware (43 percent).

Median Asset Growth Rate Rises to 2.0 Percent

The median annual asset growth rate at federally insured credit unions was 2.0 percent nationally in the year ending in the fourth quarter of 2014. The median growth rate for assets was 1.6 percent during the year ending in the fourth quarter of 2013. The median growth rate was highest in Alaska (6.3 percent) and Vermont (5.8 percent). New Jersey (-0.3 percent) was the only state in which median asset growth over the year was negative.

Utah, North Dakota Record Highest Aggregate Returns on Average Assets

Nationally, the aggregate return on average assets among all federally insured credit unions was 80 basis points during 2014, compared to 78 basis points the previous year. The aggregate return on average assets was positive in every state in 2014. Utah (162 basis points) had the highest aggregate return, followed by North Dakota (109 basis points). Connecticut (26 basis points) and New Jersey (34 basis points) posted the lowest aggregate returns on average assets.

Median Shares and Deposits Growth Rate Slightly Higher; Vermont, Alaska Lead

Nationally, federally insured credit unions’ median growth rate for shares and deposits was 1.8 percent in the year ending in the fourth quarter of 2014, up slightly from the median growth rate of 1.7 percent during the previous year. Vermont and Alaska (both 6.0 percent) showed the highest median growth rate for shares and deposits. At the median, shares and deposits fell in New Jersey (-0.5 percent) and Delaware (-0.2 percent).

Median Membership Slips; Smaller Credit Unions Most Likely to Decline

Membership in federally insured credit unions continued to grow during 2014, but that growth was concentrated in larger institutions. The median membership growth rate was negative 0.3 percent. Nationally, 53 percent of credit unions, most of them with assets of less than $50 million, lost membership over the year.

Alaska (2.6 percent) had the highest median membership growth rate, followed by Idaho (2.2 percent). Median membership growth was negative in 27 states, with Pennsylvania (-1.8 percent) ranking the lowest.

Median Total Delinquency Rate Remains Stable

The median delinquency rate at federally insured credit unions was 0.9 percent nationally in the fourth quarter of 2014. A year earlier, the rate was 1.0 percent. The District of Columbia (1.8 percent) posted the highest median delinquency rate, followed by New Jersey (1.7 percent). North Dakota (0.3 percent) had the lowest median delinquency rate of any state at the end of the 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 99 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.