NCUA: State-level data show widespread loan growth in year ending in first quarter
Median asset and deposits growth up, median delinquency rates down
ALEXANDRIA, VA (June 12, 2015) – Median loan growth in federally insured credit unions was 4.0 percent during the year ending March 31, 2015, according to state-level data compiled by the National Credit Union Administration.
There were no states in which median loan growth was zero or negative over the year.
Nationally, four-quarter median asset growth and median shares and deposits were both up slightly from the previous year, while median delinquency rates declined. Aggregate return on average assets in the first quarter was unchanged from the same period a year ago. Overall membership increased over the year, and positive growth continued to concentrate in larger credit unions. Membership fell at more than half of all credit unions over the past four quarters.
The NCUA Quarterly U.S. Map Review, available here, tracks performance indicators for federally insured credit unions in the 50 states and the District of Columbia. The review also includes information on two key state-level economic indicators: unemployment rates and home price changes.
Idaho and Arizona Lead in Median Loan Growth Rates
Nationally, median growth in loans outstanding was 4.0 percent during the year ending in the first quarter of 2015, up from 2.7 percent in the year ending in the first quarter of 2014. The highest median growth rates for loans were in Idaho (13.4 percent) and Arizona (9.6 percent). At the median, loan growth was slowest in Arkansas (0.5 percent).
Median Loan-to-Share Ratio Up Slightly
Nationally, the median ratio of loans outstanding to total shares and deposits was 59 percent at the end of the first quarter of 2015, compared to 57 percent at the end of the first quarter of 2014. The median loan-to-share ratio was highest among credit unions in Idaho (86 percent), followed by Wisconsin and Maine (both 78 percent). The median loan-to-share ratio was lowest in Hawaii and Delaware (both 41 percent).
Median Asset Growth Rate 1.8 Percent; Alaska and Idaho Highest
Median asset growth was 1.8 percent nationally in the year ending in the first quarter of 201, up from 1.5 percent a year earlier. Median asset growth was highest in Alaska (5.6 percent) and Idaho (4.8 percent). New Jersey (-0.6 percent) and the District of Columbia (-0.2 percent) had negative median asset growth over the year.
Utah, Iowa, Washington Record Highest Returns on Average Assets
Nationally, the annualized aggregate return on average assets at federally insured credit unions was 78 basis points during the first quarter of 2015, matching the return during the first quarter of 2014. The aggregate return on average assets was positive in each state during the first quarter.
Utah (136 basis points) had the highest aggregate returns, followed by Iowa and Washington (both 103 basis points). New Jersey (23 basis points) and Connecticut (29 basis points) posted the lowest aggregate returns on average assets.
Median Shares and Deposits Growth Inch Higher; Alaska, Montana Lead
Nationally, federally insured credit unions’ median growth rate for shares and deposits was 1.6 percent in the year ending in the first quarter of 2015, up slightly from the median growth rate of 1.5 percent during the previous year. Alaska (5.4 percent) and Montana (4.9 percent) showed the highest median growth rates for shares and deposits. At the median, shares and deposits fell in New Jersey (-1.0 percent), Delaware (-0.4 percent) and Ohio (-0.1 percent).
Median Total Delinquency Rate Down Slightly from a Year Ago
The median delinquency rate at federally insured credit unions was 0.7 percent nationally in the first quarter of 2015, down from 0.8 percent a year earlier. The District of Columbia (1.6 percent) posted the highest median delinquency rate, followed by New Jersey (1.4 percent). North Dakota and New Hampshire (both 0.2 percent) had the lowest median delinquency rate.
Smaller Credit Unions Most Likely to Experience Membership Declines
While overall membership in federally insured credit unions continued to grow in the year ending in the first quarter of 2015, it continued to be concentrated in larger institutions. The median membership growth rate was negative 0.4 percent. Nationally, 53 percent of federally insured credit unions lost membership over the year, and 75 percent of those had assets of less than $50 million.
Alaska (3.1 percent) had the highest median membership growth rate, followed by Idaho (1.9 percent). Median membership growth was negative in 23 states, with Pennsylvania and Virginia (both -1.9 percent) ranking 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 United States, NCUA operates and manages the National Credit Union Share Insurance Fund, insuring the deposits of nearly 100 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.