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Median Asset and Deposits Growth Up, Median Delinquency Rates Down

ALEXANDRIA, Va. (Dec. 11, 2015) – Median loan growth in federally insured credit unions was 4.1 percent during the year ending Sept. 30, 2015, and all states reported positive growth, according to state-level data compiled by the National Credit Union Administration and released today.

Nationally, median asset growth over the year ending Sept. 30 was 2.4 percent, while median growth in shares and deposits was 2.3 percent. The median loan-to-share ratio was up 2.0 percentage points from a year earlier. Aggregate annualized return on average assets in the first three quarters of 2015 was 80 basis points, down slightly from the same period a year earlier. The median total delinquency rate declined to 0.8 percent from 0.9 percent a year earlier. Overall membership in credit unions continued to grow, although the median rate of growth was negative 0.2 percent. Membership growth continued to be concentrated in larger credit unions. Overall, 52 percent of federally insured credit unions had fewer members at the end of the third quarter of 2015 than a year earlier.

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.

Median Loan Growth Rates Positive in Every State; Idaho, Alaska Highest

Nationally, median growth in loans outstanding was 4.1 percent during the year ending in the third quarter of 2015, up from 3.5 percent in the year ending in the third quarter of 2014. The highest median growth rates for loans were in Idaho (10.0 percent) and Alaska (9.0 percent). Arkansas (0.3 percent) had the lowest median loan growth, followed by New Jersey (0.7 percent).

Utah, Nevada Credit Unions Post Highest Aggregate Returns on Average Assets

Nationally, the annualized aggregate return on average assets at federally insured credit unions was 80 basis points during the first three quarters of 2015, down from 83 basis points a year earlier. The aggregate return on average assets was positive in every state during the first three quarters of 2015.

Utah (139 basis points) had the highest aggregate return, followed by Nevada (113 basis points). New Jersey (22 basis points) and Connecticut (34 basis points) posted the lowest aggregate returns on average assets.

Median Asset Growth Rate 2.4 Percent; Idaho and New Hampshire Highest

Median asset growth was 2.4 percent nationally in the year ending in the third quarter of 2015, up from 1.4 percent a year earlier. Median asset growth was highest in Idaho (6.3 percent), followed by New Hampshire (5.7 percent). The median level of assets was unchanged in New Jersey and grew in all other states.

Median Shares and Deposits Growth Up; Alaska and New Hampshire Lead

Nationally, federally insured credit unions’ median growth rate in shares and deposits was 2.3 percent in the year ending in the third quarter of 2015, up from 1.1 percent during the previous year. The median growth rate in shares and deposits was highest in Alaska (7.6 percent) and New Hampshire (6.9 percent). The median growth rate in shares and deposits was negative in New Jersey (-0.6 percent) and Delaware (-0.2 percent).

Idaho, Vermont Show Highest Median Loan-to-Share Ratios

Nationally, the median ratio of loans outstanding to total shares and deposits was 62 percent at the end of the third quarter of 2015, compared to 60 percent at the end of the third quarter of 2014. The median loan-to-share ratio was highest among credit unions in Idaho (88 percent) and Vermont (82 percent). The median loan-to-share ratio was lowest in Hawaii (43 percent) and Delaware (46 percent).

Median Total Delinquency Rate Declines from 2014

The median delinquency rate at federally insured credit unions was 0.8 percent nationally in the third quarter of 2015, down from 0.9 percent a year earlier. Five states—California, Colorado, North Dakota, Oregon and South Dakota—shared the lowest median delinquency rate (0.4 percent). Delaware (1.5 percent) reported the highest median delinquency rate, followed by the District of Columbia and New Jersey (both 1.4 percent).

Membership Growth Remains Concentrated in Larger Credit Unions

Overall membership in federally insured credit unions continued to grow in the year ending in the third quarter of 2015, with growth again concentrated in larger institutions. The median membership growth rate was negative 0.2 percent. Nationally, 52 percent of federally insured credit unions had fewer members than a year earlier. Credit unions with falling memberships tend to be small; about 75 percent had less than $50 million in assets.

Alaska (3.9 percent) had the highest median membership growth rate, followed by Idaho (3.4 percent). Median membership growth was negative in 23 states, with Pennsylvania (-2.2 percent) ranking lowest.