The National Credit Union Administration recently released its quarterly map review, tracking a variety of performance indicators for credit unions including loan and membership growth, delinquencies and more. While NCUA said federally insured CUs across the country "generally saw continued positive trends in the third quarter of 2018," there are also signs that things are slowing down at the national level.
Some highlight figures: nationally, for the year ending Sept. 30, 2018, median loan growth in federally insured credit unions was 5.9 percent; median asset growth was 1.7 percent; the median rate of growth in shares and deposits was 1.3 percent; and the median loans-to-shares ratio was 69 percent.
All figures for the following slides are year-over-year, Q3 2017 to Q3 2018.
Median annual asset growth
Nationally, median asset growth was 1.7 percent. In other words, the regulator said, half of all federally insured credit unions had asset growth at or above 1.7 percent and half had asset growth of 1.7 percent or less. In the year ending in the third quarter of 2017, the median growth rate in assets was 2.9 percent.
Utah leads in median asset growth
Median asset growth was highest in Utah (5.6 percent), followed by Maine (5.0 percent). Maine also was second in this category in Q2 2018.
Four straight negative quarters for Louisiana
New Jersey had the lowest median asset growth (-1.2 percent), along with Louisiana (-0.6 percent), and Kansas (-0.4 percent) over the year ending in the third quarter of 2018. At the median, assets grew the least in Arkansas (0.2 percent) and North Carolina (0.3 percent). This is the fourth straight quarter Louisiana has registered negative asset growth, and the third straight negative quarter for New Jersey.
Median annual share and deposit growth
Nationally, median growth in shares and deposits stood at 1.3 percent. At the end of Q3 2017, year-over-year median growth rate in shares and deposits was 2.8 percent.
Idaho continues strong showing in shares/deposits
Median growth in shares and deposits was highest in Idaho (6.3 percent) and Utah (6.0 percent). Idaho was second in this category in the first two quarters of 2018.
Shares/deposits growth negative in 6 states
Median growth in shares and deposits was negative in six states, led by New Jersey (-1.3 percent) and Kansas (-0.6 percent). At the median, shares and deposits were unchanged in Rhode Island and grew the least in North Dakota and Mississippi (both 0.1 percent). Louisiana was the dubious “leader” of this category in the four previous quarters, and once again saw negative growth.
Median annual membership growth
While overall membership in federally insured credit unions continues to grow, at the median the figure is roughly unchanged for the fourth consecutive quarter. Overall, almost half of federally insured credit unions had fewer members at the end of the third quarter of 2018 than a year earlier. CUs with shrinking memberships also tend to be small: Of those losing membes, approximately 75 percent had less than $50 million in assets.
Alaska CUs continue to grow membership
Credit unions headquartered in Alaska and Oregon posted the highest median membership growth rates (3.8 percent and 3.0 percent, respectively). Alaska also led this category in Q1 and Q2 2018, while Oregon has been in second place for the last two quarters as well.
CUs in D.C. continue to lose members
The median membership growth rate for federally insured credit unions was negative in 13 states. The District of Columbia had the worst figure (-1.6 percent), followed by Illinois (-1.5 percent). At the median, membership was unchanged in New York, Tennessee, and Virginia. CUs in the District of Columbia had the second-largest decline in Q2, Q3 and Q4 2017, and then had the largest decline in both Q1 and Q2 2018.
Median annual loan growth
Nationally, the median growth rate in loans outstanding was 5.9 percent. The median loan growth rate during the previous year was 5.0 percent.
Minnesota leads in median loan growth
Median loan growth was positive in every state, though Minnesota posted the strongest gains (9.6 percent), followed by Washington (9.4 percent). Washington has been first or second in this category in four consecutive quarters.
New Jersey, Connecticut have slowest growth in lending
The slowest median growth rate in loans outstanding was in New Jersey (1.1 percent) followed by Connecticut (2.7 percent). Lending troubles are a long-running theme in the Garden State: In 2017, New Jersey was tied for slowest median loan growth in Q2, was second-slowest in Q3 and had the slowest growth in Q4. In Q1 2018, New Jersey was the only state in the union that had a decline in loans outstanding. In Q2 2018 it once again had the slowest median growth rate.
Median total delinquency rate
The median total delinquency rate among federally insured credit unions was 66 basis points, compared to 72 basis points in the third quarter of 2017.
New Jersey, Mississippi 'lead' in delinquency rate
The median delinquency rate was highest in New Jersey (144 basis points), followed by Mississippi (118 basis points). New Jersey has been atop this category for 10 straight quarters.
CU members in Oregon pay their loans
The median delinquency rate was lowest in Oregon (30 basis points), followed by North Dakota and New Hampshire (both 31 basis points). Oregon had the lowest median delinquency rate in Q2, Q3 and Q4 2017, then had the second-lowest rate in Q1 2018 before returning to the lowest rate in Q2.
Median loans-to-shares ratio
Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 69 percent at the end of Q3. At the end of the third quarter of 2017, the median loans-to-shares ratio was 65 percent.
Idaho, Vermont CUs well loaned out
The median loans-to-shares ratio was highest in Idaho (92 percent), followed by Vermont (89 percent). Idaho and Vermont continue to perform well in this category. Idaho was first or second in all four quarters in 2017, and has been first in all three quarters of 2018. Vermont was second in both Q1 and Q2 2018.
Delaware CUs low in loans-to-shares
The median loans-to-shares ratio was lowest in Delaware (49 percent) followed by Hawaii (50 percent). Delaware also had the lowest ratio in Q2 and has been among the lowest performers in this category for 11 straight quarters.
Median return on average assets
Nationally, the median annualized return on average assets at federally insured credit unions was 60 basis points during the first three quarters of 2018, compared to 39 basis points during the same period of 2017.
Silver State CUs shine in ROAA
Nevada (110 basis points) had the highest median return on average assets during the first three quarters of 2018, followed by Oregon (93 basis points). Nevada was the leader in this category for five consecutive quarters before placing second in Q2.
New Jersey, Massachusetts lowest in ROAA
New Jersey (37 basis points) had the lowest median return on average assets, followed by Massachusetts (41 basis points). New Jersey also was the dubious “leader” in this category in Q4 2017, and both Q1 and Q2 2018.
Share of CUs with positive net income
Nationally, 88 percent of federally insured credit unions had positive net income during the first three quarters of 2018, compared to 81 percent during the first three quarters of 2017. At least 70 percent of credit unions in every state had positive net income during the first three quarters of 2018.
100 percent of Vermont, New Hampshire CUs have positive income
The share of federally insured credit unions with positive net income was highest in Vermont and New Hampshire (both 100 percent), followed by Maine, Wisconsin, and Oregon (all 98 percent). Oregon has been among the best performers in this category for three straight quarters.
D.C. continues to lag in positive net income
The share of federally insured credit unions with positive net income was lowest in the District of Columbia (74 percent), followed by Louisiana (76 percent). D.C. has been the dubious “leader” of this category for six straight quarters. Louisiana also was second in both Q1 and Q2 2018.
Harvest, a fintech founded by Nami Baral, has developed an alternative scoring method that amasses data on spending patterns, debt payments and even earnings potential to get a better sense of consumers' creditworthiness.
Customers suffered when they were placed in mortgage relief plans without their consent, the Massachusetts senator says. She urged the Federal Reserve to take the blunder into account as it weighs when to lift other regulatory sanctions against the bank.
To date, the Small Business Administration hasn’t acted on tens of thousands of applications that lenders have submitted since early August. However, it will begin doing so by early next week, an official says.