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Median Delinquency Rate Holds Steady; Return on Average Assets down Slightly

ALEXANDRIA, Va. (June 10, 2016) – More than half of federally insured credit unions in every state reported growth in loan balances over the year ending in the first quarter of 2016, 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 4.5 percent during the year ending in the first quarter of 2016. The median rate of growth in deposits and shares was 3.0 percent. The median loan-to-share ratio moved above 60 percent. The median loan delinquency rate was essentially unchanged from a year earlier at 0.7 percent.

The NCUA Quarterly U.S. Map Review, available online here, tracks credit union performance indicators 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.

All States Report Positive Median Loan Growth; Nevada, Washington Highest

Nationally, median growth in loans outstanding was 4.5 percent over the year ending in the first quarter of 2016, up from 4.0 percent the previous year. The highest median growth rates for loans were in Nevada (9.9 percent) and Washington (8.9 percent). Median loan growth was slowest in New Jersey (0.5 percent) and the District of Columbia (1.2 percent).

Median Asset Growth Rate 2.9 Percent; Alaska, New Hampshire Highest

Median asset growth was 2.9 percent nationally in the year ending in the first quarter of 2016, up from 1.8 percent a year earlier. Median asset growth was fastest in Alaska (6.7 percent) and New Hampshire (6.3 percent). Median asset growth was slowest in New Jersey (0.7 percent) and Louisiana (1.0 percent).

Idaho, Alaska Report Highest Median Growth Rates in Shares and Deposits

Nationally, federally insured credit unions’ median growth rate in shares and deposits was 3.0 percent in the year ending in the first quarter of 2016, up from 1.6 percent during the previous year.

At the median, shares and deposits rose in each state over the year ending in the first quarter. The median growth rate in shares and deposits was highest in Idaho (6.8 percent) and Alaska (6.3 percent). The median growth rate in shares and deposits was lowest in New Jersey (0.6 percent) and Kansas (1.2 percent).

Utah, Virginia Pace Nation on Aggregate Returns on Average Assets

Nationally, the aggregate return on average assets at federally insured credit unions was 75 basis points at an annual rate at the end of the first quarter of 2016, down slightly from 78 basis points at the end of the first quarter of 2015. The aggregate return on average assets was positive in every state in the first quarter of 2016. Utah (117 basis points) had the highest aggregate return, followed by Virginia (115 basis points). New Jersey (17 basis points) and Connecticut (33 basis points) posted the lowest aggregate returns on average assets.

Idaho and Alaska Again Report Highest Median Loan-to-Share Ratios

Nationally, the median ratio of loans outstanding to total shares and deposits was 61 percent at the end of the first quarter of 2016, compared to 59 percent a year previously. The median loan-to-share ratio was highest among credit unions in Idaho (87 percent) and Alaska (82 percent). The median loan-to-share ratio was lowest in Hawaii (42 percent) and Delaware (44 percent).

Median Total Delinquency Rate Steady

The median total delinquency rate at federally insured credit unions was 0.7 percent nationally in the first quarter of 2016, unchanged from the first quarter of 2015. At the end of the first quarter, the median delinquency rate was lowest in California, Colorado and New Hampshire (all 0.3 percent). New Jersey (1.6 percent) reported the highest median delinquency rate, followed by Louisiana (1.3 percent).

Greater Share of Credit Unions Gain Members

While overall credit union membership continued to grow during the year ending in the first quarter of 2016, at the median, membership was unchanged.

Zero median membership growth means that, overall, 50 percent of federally insured credit unions had fewer members at the end of the first quarter of 2016 than a year earlier. Over the previous year, the median membership growth rate was negative 0.4 percent, and 53 percent of credit unions lost members over the year ending in first quarter of 2015.

Membership growth over the most recent four quarters continued to be concentrated in larger credit unions. Credit unions with falling membership tended to be small; about 75 percent of those credit unions had assets of less than $50 million.

Alaska (4.0 percent) had the highest median membership growth rate over the year ending in the first quarter of 2016, followed by New Mexico (2.0 percent). Median membership growth was negative in 16 states. At the median, membership declined the most in Pennsylvania (-1.8 percent).