NCUA’s Q3 2017 state data shows some signs of slowing growth
December 28, 2017 4:39 PM
NCUA maps state-level growth
NCUA recently released its latest Quarterly U.S. Map Review, in which the regulator tracks a variety of performance indicators, including membership, loans, shares, delinquencies and more. It said federally insured credit unions “saw loans grow at a faster rate in the third quarter than a year earlier, while assets and shares grew more slowly.”
Some highlight figures: nationally, for the year ending Sept. 30, 2017, median loan growth at federally insured credit unions was 5.0 percent during the year ending in the third quarter. Median asset growth was 2.9 percent; the median rate of growth in deposits and shares was 2.8 percent; and the median loans-to-shares ratio was 65 percent.
Some highlight figures: nationally, for the year ending Sept. 30, 2017, median loan growth at federally insured credit unions was 5.0 percent during the year ending in the third quarter. Median asset growth was 2.9 percent; the median rate of growth in deposits and shares was 2.8 percent; and the median loans-to-shares ratio was 65 percent.
Passman, Aaron
Median annual asset growth
Nationally, median asset growth over the year ending in the third quarter of 2017 was 2.9 percent. In other words, the agency said, half of all federally insured credit unions had asset growth at or above 2.9 percent and half had asset growth of 2.9 percent or less. In the year ending in the third quarter of 2016, the median growth rate in assets was 4.2 percent.
Idaho, Vermont lead asset growth
At the median, assets rose in each state over the year ending in the second quarter of 2017. Median asset growth was highest in Idaho (8.3 percent), followed by Vermont (6.2 percent). Idaho has led this category two quarters in a row.
D.C. CUs continue to struggle
For the fifth consecutive quarter, the District of Columbia was the dubious “leader” in this category. After four straight quarters of having the slowest median asset growth, D.C. saw negative asset growth (-1.0 percent). At the median, assets grew the least in Louisiana (0.3 percent) and Arkansas (0.4 percent).
Passman, Aaron
Median annual share and deposit growth
Nationally, median growth in shares and deposits over the year ending in the third quarter of 2017 was 2.8 percent. In the year ending in the third quarter of 2016, the median growth rate in shares and deposits was 4.5 percent.
Washington State on top for share and deposit growth
The median growth rate in shares and deposits was highest in Washington (6.3 percent) and Vermont (5.9 percent). Oregon had been in the top two in the first two quarters of 2017.
Shrinking in Louisiana
The median growth rate in shares and deposits was negative in Louisiana (-0.1 percent). At the median, shares and deposits remained unchanged in the District of Columbia and grew the least in Arkansas and New Jersey (both 0.5 percent). D.C. and Arkansas have been among the worst performers in this category each quarter in 2017.
Passman, Aaron
Challenges ahead for membership growth?
While overall membership at federally insured credit unions continued to grow in the year ending in the third 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 third 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.
Arizona leads the way for membership growth
Over the year ending in the third quarter of 2017, Arizona had the highest median membership growth rate (2.5 percent), followed by Washington (2.4 percent). Washington has been in the top two in this category in all three quarters this year.
Mid-Atlantic region struggles for membership gains
In 22 states, the median membership growth rate for federally insured credit unions was negative. At the median, membership declined the most in the District of Columbia (-1.8 percent), followed by Pennsylvania (-1.2 percent). Pennsylvania has had the largest or second-largest decline in this category for seven consecutive quarters. The District of Columbia had the second-largest decline in Q2.
Passman, Aaron
Median annual loan growth
Nationally, the median growth rate in loans outstanding was 5.0 percent over the year ending in the third quarter of 2017. The median loan growth rate during the previous year was 3.9 percent.
CUs on a lending spree in Nevada, Oregon
At the median, loans outstanding rose in each state over the year ending in the third quarter of 2017. The highest median growth rate in loans outstanding was in Nevada (12.3 percent), followed by Oregon (11.8 percent). The Silver State also led this category in Q2.
Wyoming, New Jersey struggle for loan growth
Median loan growth was slowest in Wyoming (0.2 percent), followed by New Jersey (0.3 percent). New Jersey was tied for slowest median loan growth in Q2.
Passman, Aaron
Median total delinquency rate
At the end of the third quarter of 2017, the median total delinquency rate among federally insured credit unions was 72 basis points, compared to 73 basis points in the third quarter of 2016.
New Jersey continues to lead in delinquencies
At the end of the third quarter of 2017, the median delinquency rate was highest in New Jersey (172 basis points), followed by Alaska (131 basis points). New Jersey has been atop this category for six straight quarters.
Oregon at the bottom of the delinquency list
The median delinquency rate was lowest in Oregon (32 basis points), followed by Minnesota and Colorado (both 35 basis points). Q3 marked the second straight quarter Oregon had the lowest median delinquency rate (also 32 basis points in Q2).
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 65 percent at the end of the third quarter of 2017. At the end of the third quarter of 2016, the median loans-to-shares ratio was 63 percent.
Loan-to-share ratio highest in Vermont, Idaho
The median loans-to-shares ratio was highest in Idaho (89 percent), followed by Vermont (87 percent). Idaho has been first or second in this category for three straight quarters. For the first time in seven quarters, Alaska was not in the top two.
Mid-Atlantic states, Hawaii struggle with loan-to-share ratios
The median loans-to-shares ratio was lowest in Delaware (48 percent), followed by New Jersey, Hawaii, and Pennsylvania (all 50 percent). Delaware and Hawaii have been among the lowest performers in this category for seven straight quarters.
Passman, Aaron
Median ROA
Nationally, the median annualized return on average assets at federally insured credit unions was 39 basis points during the first three quarters of 2017, compared to 37 basis points during the first three quarters of 2016.
Nevada, Vermont, Utah lead in ROA
Nevada (83 basis points) had the highest median return on average assets during the first three quarters of 2017, followed by Vermont and Utah (both 73 basis points). The Silver State has been the leader in this category for three consecutive quarters.
Delaware, D.C. see lowest ROA
For the second straight quarter, the District of Columbia had the lowest median return on average assets (13 basis points), followed by Delaware (21 basis points).
Passman, Aaron
Positive net income
Nationally, 81 percent of federally insured credit unions had positive net income during the first three quarters of 2017, compared to 80 percent in the first three quarters of 2016. At least 55 percent of credit unions in every state had positive net income during the first three quarters of 2017.
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Nevada leads net income
The share of federally insured credit unions with positive net income was highest in Nevada (100 percent), followed by Oregon (97 percent). Nevada and Oregon were 1-2 in the previous quarter, and Oregon was first in this category in Q1.
Poor performance in Arkansas, D.C., Delaware
The share of federally insured credit unions with positive net income was lowest in the District of Columbia (55 percent), followed by Arkansas and Delaware (both 67 percent). D.C. has been the dubious “leader” of this category for two straight quarters, while Arkansas has been in the bottom two for five consecutive quarters.
