Growth in Credit Union Assets, Shares and Deposits Slows; Delinquencies Drop
ALEXANDRIA, Va. (June 5, 2014) – A new analysis of state-level data by the National Credit Union Administration shows several key performance measures, particularly loan and membership growth, rising at federally insured credit unions in the year ending March 31, 2014.
Nationally, assets and shares grew at a slower pace than in the previous year, while delinquencies declined and return on average assets (ROAA) was slightly lower. State-wide declines in assets, loans, shares and members in Massachusetts over the past year resulted from the conversion of a large credit union to a bank.
The NCUA Quarterly U.S. Map Review, prepared by NCUA’s Office of the Chief Economist and available here, tracks performance indicators for federally insured credit unions in the 50 states and the District of Columbia. The review includes two key state-level economic indicators: unemployment rates and home price changes. The review also has data on median loan growth and median return on average assets to aid comparisons of typical credit unions across states.
Annual Loan Growth 8.8 Percent; Idaho, Iowa See Largest Gains
Nationally, total loans outstanding grew 8.8 percent in the year ending in the first quarter of 2014, a significant increase from the 4.9 percent growth rate in the year ending in the first quarter of 2013. Outstanding loans grew faster in 44 states, and 7 states saw slower growth. Idaho (17.7 percent) and Iowa (14.1 percent) posted the fastest growth.
Membership Growth Picks Up; Idaho and Virginia Continue to Lead
Nationally, membership in federally insured credit unions rose 2.6 percent to 97.1 million in the year ending in the first quarter of 2014, a somewhat faster pace than in the previous year. Membership grew in 43 states and declined in 8 states. Idaho (8.7 percent) and Virginia (8.2 percent) reported the fastest growth. Indiana experienced the largest contraction (4.1 percent).
Utah, North Carolina Record Highest Returns on Average Assets
Nationally, the annualized return on average assets at federally insured credit unions was 78 basis points at the end of the first quarter of 2014 compared to 83 basis points the previous year. Compared to a year ago, return on average assets was higher in 14 states, unchanged in 1 state and lower in 36 states. Utah had the highest return on average assets (128 basis points), followed by North Carolina (112 basis points). New Jersey (24 basis points) and Connecticut (26 basis points) posted the lowest return on average assets.
Asset Growth Rate Slows; Idaho and Arizona Fastest
Total assets at federally insured credit unions grew 4.0 percent nationally in the year ending in the first quarter of 2014 after rising 5.3 percent in the previous year. Federally insured credit unions in Idaho (8.9 percent) and Arizona (8.0 percent) experienced the fastest overall growth in total assets. Assets fell 1.3 percent in Massachusetts, 0.7 percent in New Jersey and 0.5 percent in Maryland over the year.
Shares and Deposits Rise 3.6 Percent Nationally, but Growth Slows in 46 States
Federally insured credit unions’ shares and deposits grew 3.6 percent nationally in the year ending in the first quarter, down from a 5.1 percent rise in the previous year. Idaho (8.0 percent) posted the largest gain of any state. Shares and deposits fell in Massachusetts, Maryland and New Jersey.
Delinquency Rate Declines Again
The delinquency rate at federally insured credit unions was 0.8 percent nationally in the first quarter, a decline from 1.0 percent a year earlier. New Jersey and Delaware posted the highest total delinquency rates. New Hampshire and North Dakota had the 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 more than 101
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.