New Quarterly Data Show Alaska, Idaho Leading Way in Asset Growth; Other States Post Negative Numbers

ALEXANDRIA, Va.–NCUA has released its latest Quarterly Map Review for the second quarter of this year, showing Alaska and Idaho again leading the way in asset growth, while New Jersey and Arkansas reported negative numbers.

The Review found CU membership growth continued, with the strongest growth concentrated in larger credit unions, while at the median, membership was roughly unchanged. Eighty-eight percent of federally insured credit unions reported positive net income at the end of the second quarter. Median annual loan growth in the year ending in the second quarter was 4.6%, and median annual asset growth was 1.7%.

Overall, here are the top-level findings released as part of the Q2 Review:

Asset Growth

  • Nationally, median asset growth over the year ending in the second quarter of 2019 was 1.7%. In other words, half of all federally insured credit unions had asset growth at or above 1.7% and half had asset growth of 1.7% or less. In the year ending in the second quarter of 2018, the median growth rate in assets was 2.1%, NCUA said.
  • Over the year ending in the second quarter of 2019, median asset growth was highest in Alaska (6.3%), followed by Idaho (6.2%).
  • Median asset growth was negative in New Jersey (-1.7%) and Arkansas (-0.8%) over the year ending in the second quarter of 2019, and was unchanged in Louisiana and North Carolina. Asset growth was positive, but modest in Virginia and West Virginia (both 0.2%).
NCUA Asset Growth

Shares/Deposits

  • Nationally, median growth in shares and deposits over the year ending in the second quarter of 2019 was 1.1%. In the year ending in the second quarter of 2018, the median growth rate in shares and deposits was 1.9%.
  • Over the year ending in the second quarter of 2019, median growth in shares and deposits was highest in Idaho (6.8%) and Alaska (5.4%), NCUA reported.
  • Median growth in shares and deposits was negative in eight states over the year ending in the second quarter of 2019, led by New Jersey (-2.4%) and Arkansas (-1.4%). At the median, shares and deposits were unchanged in Texas, and grew modestly in Connecticut, Illinois, and Nebraska (all 0.3%).
  • While overall membership in federally insured credit unions continued to grow during the year ending in the second quarter of 2019, at the median, membership was roughly unchanged. Membership was also unchanged at the median over the year ending in the second quarter of 2018, the agency reported. Overall, almost half of federally insured credit unions had fewer members at the end of the second quarter of 2019 than a year earlier. Credit unions with falling membership tend to be small; about 70% had less than $50 million in assets.
  • Over the year ending in the second quarter of 2019, credit unions headquartered in Nevada (2.5%) and Alaska (2.4%) posted the highest median membership growth rates.
  • In 18 states, the median membership growth rate for federally insured credit unions was negative. At the median, membership declined the most in Illinois, New Jersey, and Pennsylvania (all -1.3%), followed by North Dakota (-0.9%). Membership was unchanged in North Carolina and Texas.
NCUA Share Growth

Lending

  • Nationally, the median growth rate in loans outstanding was 4.6% over the year ending in the second quarter of 2019. The median loan growth rate during the previous year was 5.4%.
  • Over the year ending in the second quarter of 2019, median loan growth was positive in all but two states. At the median, loans outstanding declined in New Jersey (-0.7%) and Arkansas (-0.2%), NCUA said.
  • Median loan growth was strongest in Minnesota (7.7%) and Utah (7.6%) over the year ending in the second quarter of 2019.
NCUA Net Income

Delinquencies

  • At the end of the second quarter of 2019, the median total delinquency rate among federally insured credit unions was 59 basis points, compared to 62 basis points in the second quarter of 2018.
  • At the end of the second quarter of 2019, the median delinquency rate was highest in New Jersey (132 basis points) and Washington, D.C. (115 basis points).
  • The median delinquency rate was lowest in New Hampshire (19 basis points) and Washington (32 basis points), according to NCUA.

Loan-to-Share Ratio

  • Nationally, the median ratio of total loans outstanding to total shares and deposits (the loans-to-shares ratio) was 70% at the end of the second quarter of 2019. At the end of the second quarter of 2018, the median loans-to- shares ratio was 66%.
  • The median loans-to-shares ratio was highest in Alaska and Vermont (both 89%) and Idaho (88%).
  • The median loans-to-shares ratio was lowest for Delaware and New Jersey, at 50% and 51%, respectively.
NCUA Membership Growth

ROA

  • Nationally, the median annualized return on average assets at federally insured credit unions was 63 basis points during the first half of 2019, compared to 52 basis points during the first half of 2018.
  • New Mexico had the highest median annualized return on average assets during the first half of 2019 (101 basis points), followed by Mississippi (88 basis points).
  • New Jersey credit unions had the lowest median annualized return on average assets (38 basis points), followed by Connecticut (42 basis points).
  • Nationally, 88% of federally insured credit unions had positive net income during the first half of 2019, compared to 85% during the first half of 2018.
  • At least 70% of credit unions in every state had positive net income during the first half of 2019, NCUA said.
  • The share of federally insured credit unions with positive net income was highest in Alaska, Maine, Nevada, New Hampshire, and Vermont (all 100%), followed by Hawaii (98%).
  • The share was lowest in the Arkansas (73%), followed by Louisiana (79%).

The full NCUA Quarterly Map Review can be found here.

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Word Count: 1306
Copyright Holder: CUToday.info
Copyright Year: 2019
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URL: http://www.cutoday.info/Fresh-Today/New-Quarterly-Data-Show-Alaska-Idaho-Leading-Way-in-Asset-Growth-Other-States-Post-Negative-Numbers