Passing $50B in total assets, Pennsylvania CUs report strong Q1

Register now

Pennsylvania credit unions collectively enjoyed a strong first quarter of 2019, with increases in members, assets, loans and net worth, according to a new study.

Data from Callahan & Associates, known as the “Pennsylvania Profile,” showed credit unions in the Keystone State now hold more than $50 billion in total assets, up 6.25% from Q1 2018. The state now ranks ninth in the U.S. for total asset size.

The 365 CUs in Pennsylvania serve more than 4.2 million members, an increase of 3.43% over the same quarter a year ago. The average number of members per credit union was 11,573 as of March 30, up 8.81% year over year.

The average member relationship – defined as the outstanding combined loan and share balances per member, excluding business loans – reached $17,169, an increase of $678 from the previous year.

While loan originations dropped 0.7% year over year, loan balances increased 8.5% from 2018 to more than $33.0 billion. According to Callahan, the biggest growth was in new auto loans, which increased 15.2% year-over-year. Second was used auto loans, which were up 12.3%.

Pennsylvania CUs reported their net charge-off ratio was just 0.44%, below the national average of 0.57%. Credit card delinquency improved 3 basis points year-over-year to 0.83%, which Callahan noted was “well below” the overall credit union average of 1.26%.

The report said CUs in the Commonwealth saw a “strong increase” in interest income, thanks to increasing loan balances and rising interest rates. Loan interest income, which makes up the largest component of total income, grew 14.4% year over year. Interest income from investments was up 35.6% as investment portfolios went up only 2.0%.

Total income for Pennsylvania CUs hit $621.2 million, up 13.5% over Q1 2018. This was attributed to the growth in interest income from loans and investments.

For all credit unions, loan growth was 7.9% and outstanding balances reached nearly $1.1 trillion, Callahan said.

For reprint and licensing requests for this article, click here.
Earnings Lending Auto lending Net interest margin Delinquencies Growth strategies Pennsylvania