NCUA data shows key growth metrics continued downward trend in Q4 2017
March 22, 2018 4:36 PM
State by state
The National Credit Union Administration's latest Quarterly U.S. Map Review shows how credit unions in all 50 states are performing across a variety of metrics, and the data for the fourth quarter of 2017 shows a continuation of many trends seen in Q3 .
The report, which tracks indicators such as membership, loans, shares, delinquencies and more, said federally insured credit unions “Saw continued loan growth in the fourth quarter.” But many important areas saw minor changes nationally for the year ending Dec. 31, 2017. Median loan growth at federally insured CUs remained at 5.0 percent, where it stood the previous quarter, but median asset growth declined slightly, from 2.9 percent at the end of Q3 to 2.5 percent at the end of Q4. Similarly, the median growth rate for shares and deposits slid from 2.8 percent at the end of Q3 to 2.4 percent at the end of Q4, though the median loans-to-shares ratio ticked up slightly, from 65 percent to 66 percent.
For more, including a look at how individual states performed, click forward to the next slide.
The report, which tracks indicators such as membership, loans, shares, delinquencies and more, said federally insured credit unions “Saw continued loan growth in the fourth quarter.” But many important areas saw minor changes nationally for the year ending Dec. 31, 2017. Median loan growth at federally insured CUs remained at 5.0 percent, where it stood the previous quarter, but median asset growth declined slightly, from 2.9 percent at the end of Q3 to 2.5 percent at the end of Q4. Similarly, the median growth rate for shares and deposits slid from 2.8 percent at the end of Q3 to 2.4 percent at the end of Q4, though the median loans-to-shares ratio ticked up slightly, from 65 percent to 66 percent.
For more, including a look at how individual states performed, click forward to the next slide.
Passman, Aaron
Median annual asset growth
Nationally, median asset growth over the year ending in the fourth quarter of 2017 was 2.5 percent. In other words, the agency said half of all federally insured credit unions had asset growth at or above 2.5 percent and half had asset growth of 2.5 percent or less. In the year ending in the fourth quarter of 2016, the median growth rate in assets was 3.2 percent.
Vermont, Washington lead asset growth
Over the year ending in the fourth quarter of 2017, median asset growth was highest in Vermont (7.0 percent), followed by Washington (5.9 percent). Vermont was second in this category in Q3 2017.
Louisiana, DC struggle
Median asset growth was negative in Louisiana (-0.1 percent) over the year ending in the fourth quarter of 2017. At the median, assets were unchanged in New Jersey and grew the least in the District of Columbia (0.4 percent) and Arkansas (0.7 percent).
Passman, Aaron
Median annual share and deposit growth
Nationally, median growth in shares and deposits over the year ending in the fourth quarter of 2017 was 2.4 percent. In the year ending in the fourth quarter of 2016, the median growth rate in shares and deposits was 3.3 percent.
Vermont, Oregon lead share growth
Over the year ending in the fourth quarter of 2017, median growth in shares and deposits was highest in Vermont (6.0 percent) and Oregon (5.5 percent). Vermont has been in the top two for two consecutive quarters. Oregon appeared in the top two in the first two quarters of 2017.
Louisiana, New Jersey, DC and Arkansas struggling for deposits
Median growth in shares and deposits was negative in Louisiana (-0.7 percent) over the year ending in the fourth quarter of 2017. Louisiana also was the dubious “leader” of this category in Q3 2017. At the median, shares and deposits remained unchanged in New Jersey and grew the least in the District of Columbia (0.2 percent) and Arkansas (0.5 percent). D.C. and Arkansas were among the worst performers in this category each quarter in 2017.
Passman, Aaron
Median annual membership growth
While overall membership in federally insured credit unions continued to grow during the year ending in the fourth quarter of 2017, at the median, membership was unchanged. Membership declined 0.1 percent at the median over the previous year. Overall, half of federally insured credit unions had fewer members at the end of the fourth quarter of 2017 than a year earlier. As previously reported by Credit Union Journal, CUs with falling membership tend to be small; about 75 percent had less than $50 million in assets.
Vermont, New Mexico lead in membership growth
Over the year ending in the fourth quarter of 2017, Vermont had the highest median membership growth rate (3.3 percent), followed by New Mexico (2.8 percent). Washington had been in the top two in this category in the first three quarters of 2017.
40 percent of all states saw shrinking membership, as well as DC
In 20 states, the median membership growth rate for federally insured credit unions was negative. At the median, membership declined the most in New Jersey (-1.2 percent), followed by the District of Columbia (-1.1 percent). CUs in the District of Columbia also had the second-largest decline in Q2, Q3 and Q4.
Passman, Aaron
Median annual loan growth
Nationally, the median growth rate in loans outstanding was 5.0 percent over the year ending in the fourth quarter of 2017. The median loan growth rate during the previous year was 4.0 percent.
Pacific Northwest leads in loan growth
At the median, loans outstanding rose in each state over the year ending in the fourth quarter of 2017. The highest median growth rate in loans outstanding was in Oregon (11.0 percent), followed by Washington (10.2 percent). Oregon had the second-highest growth rate in this category in Q3 2017. Nevada had been first in Q2 and Q3.
Slowest loan growth
Median loan growth was slowest in New Jersey (0.7 percent), followed by North Dakota (1.8 percent). New Jersey was tied for slowest median loan growth in Q2 and was second-slowest in Q3.
Passman, Aaron
Median total delinquency rate
At the end of the fourth quarter of 2017, the median total delinquency rate among federally insured credit unions was 76 basis points, compared to 80 basis points in the fourth quarter of 2016.
Alaska, New Jersey continue to struggle with late payments
At the end of the fourth quarter of 2017, the median delinquency rate was highest in New Jersey (155 basis points), followed by Alaska (138 basis points). New Jersey has been atop this category for seven straight quarters. Alaska also had the second-highest delinquency rate in Q3.
Oregon, California see lowest delinquency rates
The median delinquency rate was lowest in Oregon (34 basis points), followed by California (38 basis points). Q4 marked the third straight quarter Oregon had the lowest median delinquency rate.
Passman, Aaron
Median loans-to-shares ratio
Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 66 percent at the end of the fourth quarter of 2017. At the end of the fourth quarter of 2016, the median loans-to-shares ratio was 64 percent.
LTS highest again in Idaho
For the second straight quarter, the median loans-to-shares ratio was highest in Idaho (91 percent), followed by Vermont (88 percent). Idaho was first or second in this category in all four quarters in 2017.
Delaware continues to struggle with loans-to-shares ratio
The median loans-to-shares ratio was lowest in Delaware (48 percent), followed by New Jersey (50 percent). Delaware has been among the lowest performers in this category for eight straight quarters.
Passman, Aaron
Median ROA
Nationally, the median annualized return on average assets at federally insured credit unions was 38 basis points during the four quarters of 2017, compared to 34 basis points during the four quarters of 2016.
Nevada, Utah lead in ROA
Nevada (71 basis points) had the highest median return on average assets during 2017, followed by Utah (67 basis points). The Silver State has been the leader in this category for four consecutive quarters. Utah was tied for second in Q3.
More struggles in New Jersey
New Jersey (19 basis points) had the lowest median return on average assets, followed by the District of Columbia (21 basis points). D.C. had the lowest median return on average assets the two previous quarters.
Passman, Aaron
Positive net income
Nationally, 82 percent of federally insured credit unions had positive net income during the four quarters of 2017, compared to 80 percent during the four quarters of 2016. At least 60 percent of credit unions in every state had positive net income during the four quarters of 2017.
Vermont, Maine lead in positive net income
The share of federally insured credit unions with positive net income was highest in Vermont (100 percent), followed by Maine (98 percent).
DC, Arkansas continue to struggle for positive net income
The share of federally insured credit unions with positive net income was lowest in the District of Columbia (62 percent), followed by Arkansas (68 percent). D.C. has been the dubious “leader” of this category for three straight quarters, while Arkansas has been in the bottom two for six consecutive quarters.
