State-chartered credit unions now hold nearly 50% of all industry assets, according to recent Q3 data released by the National Credit Union Administration and analyzed by the National Association of State Credit Union Supervisors (NASCUS). That figure represents a 6.7% increase since the beginning of 2016, compared to 5.4% growth for federal credit unions.
All told, there are more than 2,300 state-chartered CUs currently operating (both federally and privately insured), with assets totaling nearly $631 billion. Memberships at state charters have hit 51.2 million (47% of total membership nationally, according to NASCUS), a 3.2% rise from the end of 2015.
As far as performance goes, however, recent data shows little difference in how the two charters perform. Return on assets, net worth ratios and loan-to-share ratios were either identical or varied by only a few basis points. Delinquency rates, net charge offs, net interest margins and membership growth were also similar, though lending at state-chartered CUs grew at a slightly faster pace than at FCUs – 8.2% for states, as opposed to 7.1% for federals.
"When we work together to craft an enabling regulatory environment while ensuring safety and soundness, the benefits to members are obvious," NASCUS President and CEO Lucy Ito said in a statement, crediting state CU boards, management and regulators for the recent success. "The state system is growing responsibly and robustly, with more consumers reaping the rewards."
A number of federally chartered CUs in recent years have converted to state charters, the latest of which was Lubbock,
