Median Asset and Deposits Growth Up, Median Delinquency Rates Down
ALEXANDRIA, Va. (Sept. 10, 2015) – Median loan growth in federally insured credit unions was 4 percent during the year ending June 30, 2015, according to state-level data compiled by the National Credit Union Administration.
Nationally, four-quarter median growth in assets and in shares and deposits were both up moderately from the four quarters ending in June 2014, while median delinquency rates declined slightly. Aggregate return on average assets in the first half of 2015 held steady from the same period a year ago. Credit union membership increased over the year, concentrated in larger credit unions. Overall, 52 percent of federally insured credit unions had fewer members at the end of the second quarter of 2015 than a year earlier.
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.
Alaska and Idaho Show Highest Median Loan Growth Rates
Nationally, median growth in loans outstanding was 4 percent during the year ending in the second quarter of 2015, up from 3.2 percent in the year ending in the second quarter of 2014. The highest median growth rates for loans were in Alaska (13.4 percent) and Idaho (11.3 percent). Arkansas (-1.2 percent) was the only state in which median loan growth was negative.
Median Loan-to-Share Ratio Increases Slightly
Nationally, the median ratio of loans outstanding to total shares and deposits was 60 percent at the end of the second quarter of 2015, compared to 58 percent at the end of the second quarter of 2014. The median loan-to-share ratio was highest among credit unions in Idaho (87 percent) and Maine (79 percent). The median loan-to-share ratio was lowest in Hawaii (41 percent) and Delaware (44 percent).
Median Asset Growth Rate 1.9 Percent; Idaho and Alaska Strongest
Median asset growth was 1.9 percent nationally in the year ending in the second quarter of 2015, up from 1.3 percent a year earlier. Median asset growth was highest in Idaho (6.9 percent), followed by Alaska (5.5 percent). New Jersey (-0.5 percent) and Pennsylvania (-0.2 percent) had negative median asset growth over the year.
Utah and Washington Post Highest Returns on Average Assets
Nationally, the annualized aggregate return on average assets at federally insured credit unions was 81 basis points during the first half of 2015, matching the aggregate return on average assets from a year earlier. The aggregate return on average assets was positive in every state during the first half of 2015.
Utah (140 basis points) had the highest aggregate return, followed by Washington (110 basis points). New Jersey (23 basis points) and Connecticut (34 basis points) posted the lowest aggregate returns on average assets.
Median Shares and Deposits Growth Up; New Hampshire and Alaska Lead
Nationally, federally insured credit unions’ median growth rate for shares and deposits was 1.8 percent in the year ending in the second quarter of 2015, up from 1.2 percent during the previous year. New Hampshire (5.6 percent) and Alaska (5.1 percent) showed the highest median growth rates for shares and deposits. At the median, shares and deposits fell in New Jersey (-0.7 percent), the District of Columbia (-0.4 percent), Delaware (-0.4 percent) and Pennsylvania (-0.2 percent).
Median Total Delinquency Rate Declines from 2014
The median delinquency rate at federally insured credit unions was 0.8 percent nationally in the second quarter of 2015, down from 0.9 percent a year earlier. New Hampshire and Colorado (both 0.3 percent) had the lowest median delinquency rates, while the District of Columbia and New Jersey (both 1.6 percent) posted the highest rates.
Membership Growth Occurring Primarily in Larger Credit Unions
Overall membership in federally insured credit unions continued to grow in the year ending in the second quarter of 2015, and that growth tended to be concentrated in larger institutions. The median membership growth rate was negative 0.3 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 assets of less than $50 million.
Alaska (3.9 percent) had the highest median membership growth rate, followed by Idaho (2.7 percent). Median membership growth was negative in 21 states, with Pennsylvania (-2.1 percent) ranking 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 account holders in all federal credit unions and the overwhelming majority of
state-chartered credit unions. At MyCreditUnion.gov, NCUA also educates the public on consumer protection and financial literacy issues.