State Credit Union Data Show Positive Trends Continue in Q1 2018

ALEXANDRIA, Va. (June 14, 2018) – Federally insured credit unions across the country generally saw continued positive trends in the first quarter of 2018, according to state-level data compiled by the National Credit Union Administration and released today.

Nationally, median loan growth in federally insured credit unions was 5.0 percent during the year ending in the first quarter. Median asset growth was 2.2 percent; the median rate of growth in shares and deposits was 2.1 percent; and the median loans-to-shares ratio was 64 percent.

The NCUA Quarterly U.S. Map Review, available online here, tracks performance indicators for federally insured credit unions in all 50 states and the District of Columbia. The review also includes information on two important state-level economic indicators: the unemployment rate and home prices.

 

Oregon Notches Highest Median Loan Growth Rate in First Quarter

Nationally, median growth in loans outstanding was 5.0 percent over the year ending in the first quarter of 2018, up from 4.4 percent during the previous year.

The highest median loan growth rates were in Oregon (11.0 percent) and Washington (10.3 percent). The lowest median loan growth rates were in Hawaii (1.7 percent) and Arkansas (1.9 percent). New Jersey ( 0.3 percent) was the only state reporting a decline in median loan growth.

 

Vermont, Idaho Report Highest Median Asset Growth Rates

Median asset growth was 2.2 percent nationally in the year ending in the first quarter of 2018, down from 3.9 percent the year before.

Median asset growth was fastest in Vermont (7.3 percent), followed by Idaho (6.9 percent). At the median, assets grew the least in Arkansas (0.1 percent) and Kansas (0.4 percent). Median asset growth was negative in Louisiana (-0.7 percent) and New Jersey (-0.3 percent).

 

83 Percent of Federally Insured Credit Unions Report Positive Net Income

Nationally, 83 percent of federally insured credit unions had positive net income during the first quarter of 2018, compared to 77 percent in the first quarter of 2017.

At least 60 percent of credit unions in every state had positive net income during the first quarter of 2018.

The share of federally insured credit unions with positive net income was highest in Oregon (97 percent), followed by Idaho, Maine, and Wisconsin (all 96 percent). The share of federally insured credit unions with positive net income was lowest in the District of Columbia (64 percent), followed by Louisiana (73 percent).

 

Shares and Deposits Rise Most Quickly in Vermont, Idaho

At the median, shares and deposits rose 2.1 percent nationally over the year ending in the first quarter of 2018, down from 4.2 percent a year earlier.

Over the year ending in the first quarter, median growth in shares and deposits was highest in Vermont (5.9 percent) and Idaho (5.8 percent).

Shares and deposits grew the least in Kansas, Mississippi, and North Dakota (all 0.2 percent). Median growth in shares and deposits was negative in Louisiana (-1.2 percent) and New Jersey (-0.3 percent).

 

Median Return on Average Assets Highest in Nevada, South Carolina

Nationally, the median annualized return on average assets at federally insured credit unions was 48 basis points during the first quarter of 2018, compared to 32 basis points a year earlier.

Nevada (89 basis points) had the highest median annualized return on average assets during the first quarter of 2018, followed by South Carolina (88 basis points). New Jersey (29 basis points) had the lowest median return on average assets, followed by Connecticut and Massachusetts (both 34 basis points).

 

Idaho, Vermont Again Report Highest Median Loans-to-Shares Ratio

Nationally, the median ratio of loans outstanding to total shares and deposits—the loans-to-shares ratio—was 64 percent during the first quarter of 2018, compared to 62 percent a year earlier.

The median loans-to-shares ratio was highest among credit unions in Idaho (88 percent) and Vermont (86 percent). The median loans-to-shares ratio was lowest in Delaware (47 percent), followed by New Jersey (48 percent).

 

Median Total Delinquency Rate Lower Over Year

The median total delinquency rate among federally insured credit unions was 60 basis points at the end of the first quarter of 2018, compared to 63 basis points a year earlier.

At the end of the first quarter of 2018, the median delinquency rate was lowest in New Hampshire (22 basis points) and Oregon (23 basis points). New Jersey (142 basis points) reported the highest median delinquency rate, followed by the District of Columbia (117 basis points).

 

Alaska, Vermont Report Highest Membership Growth Rates

Alaska (3.7 percent) posted the highest median membership growth rate in the first quarter of 2018, followed by Vermont (3.3 percent).

Median membership growth was negative in 18 states. At the median, membership declined the most in the District of Columbia (-2.1 percent), followed by Pennsylvania (-1.3 percent).

At the median, membership growth in federally insured credit unions nationally was roughly unchanged from the previous year. Overall, almost half of federally insured credit unions had fewer members at the end of the first quarter of 2018 than a year earlier. Credit union membership continued to be strongest in larger institutions; about 75 percent of credit unions with declining membership had assets below $50 million.

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