Returns on Average Assets Steady, Delinquency Rates Drop, Asset Growth Slows
ALEXANDRIA, Va. (Sept. 5, 2013) – A new analysis of state-level data for federally insured credit unions finds strong growth in loans and membership in the year ending June 30, 2013, according to the National Credit Union Administration.
The NCUA Quarterly U.S. Map Review
, available here
, tracks performance indicators for federally insured credit unions in the 50 states, the District of Columbia, Puerto Rico, Guam and the Virgin Islands. The review also summarizes key state-level economic indicators, including unemployment rates and home price changes.
Loan Growth Fastest in Idaho and Oklahoma
Total loans outstanding grew 5.5 percent in the year ending in the second quarter of 2013, up from 3.2 percent the previous year. All but six of the 54 states and territories included in the report showed loan growth, with Idaho (13.4 percent) and Oklahoma (12.1 percent) posting the largest gains. Loans outstanding declined in Nevada (–7.0 percent) and three other states, as well as in the Virgin Islands and Washington, D.C.
Idaho and Virginia Top States in Membership Gains
Membership in federally insured credit unions rose 2.2 percent to 95.2 million in the year ending in the second quarter, a slightly slower pace than in the year ending in the second quarter of 2012. Membership increased in 41 of the states and territories, with Idaho (8.8 percent) and Virginia (7.9 percent) reporting the fastest growth. Membership declined in 11 states, the Virgin Islands and Washington, D.C., led by Nevada (–4.5 percent).
Utah and Washington have Highest Returns on Average Assets
Nationally, the annualized return on average assets (ROAA) at federally insured credit unions was 85 basis points in the first half of 2013, essentially unchanged from the same period in 2012, when it was 86 basis points. ROAA was higher in 13 states and Guam compared to first half of 2012. Utah had the highest annualized ROAA (150 basis points), followed by Washington (126 basis points). The Virgin Islands was the only jurisdiction with negative annualized ROAA (–13 basis points). Washington, D.C., (18 basis points) and Delaware (26 basis points) posted the lowest annualized returns of the remaining states and territories in the first half of 2013.
Maine, Alaska Lead States with Highest Positive Net Income Share
Nationally, 73 percent of federally insured credit unions had positive net income in the first half of 2013, down slightly from 74 percent the prior year. Compared with the first half of 2012, the share of credit unions with positive net income rose in 22 states and Washington, D.C., and was unchanged in Alaska and Guam. Maine and Alaska (both 92 percent) posted the highest shares of federally insured credit unions with positive net income among the states, while the Virgin Islands (40 percent) and Connecticut (53 percent) had the lowest.
Asset, Share and Deposit Growth Rates Slow; Delinquencies and Charge-offs Fall
NCUA’s Office of the Chief Economist prepares and issues the quarterly review, which includes other state-level credit union data and maps on essential metrics like:
- Annual asset growth. Federally insured credit unions assets rose 4.8 percent nationally in the year ending in the second quarter of 2013, after rising 6.9 percent during the previous year. Federally insured credit unions in Iowa and Idaho led the nation in annual asset growth.
- Annual share and deposit growth. Federally insured credit unions shares and deposits grew 4.7 percent nationally, down from a 7.0 percent rise the year before. Iowa posted the largest gain in the country.
- Delinquency rate. The delinquency rate at federally insured credit unions dropped to 1.0 percent nationally from 1.2 percent the year before. The Virgin Islands and Nevada posted the highest delinquency rates, while New Hampshire and Idaho had the lowest.
- Annualized net charge-off rate. The annualized net charge-off rate for federally insured credit unions fell to 58 basis points nationally from 75 basis points in the first half of 2012. North Dakota and West Virginia posted the lowest rates.
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
Pocket Cents, NCUA also educates the public on consumer protection and financial literacy issues.