ALEXANDRIA, Va. (12/10/14)--Federally insured credit unions have been reporting strong loan growth all year and that positive trend even picked up a bit during the third quarter of this year. The National Credit Union Administration released state-level data on that and other credit union financial trends Tuesday.
Nationally, the median growth rate for loans outstanding was 3.5% during the year ending in the third quarter. That was up from the 1.8% median growth rate in the year ending Sept. 30, 2013.
The NCUA report showed that all states showed positive median loan growth over the year. The highest median growth rates for loans were in Idaho (9.5%) and Arizona (9.2%). Kansas had the lowest growth rate (0.3%).
Federally insured credit unions have been reporting stronger operating and financial results throughout 2014, as illustrated through the recent release of aggregate call report data.
The aggregate trends are explored in a bit more detail in the NCUA's just-released, state-level data. Unlike the national data released last week, the state-level analysis uses medians rather than averages to describe credit union results.
CUNA Vice President of Economics and Statistics Mike Schenk notes that report on medians provides credit unions with a better picture of what the typical institution is experiencing. "For instance, last week we learned that nationally, credit union loans grew by 10.0% over the 12 months ending September 2014.
"However, a good deal of that growth is concentrated in larger institutions--so the 10.0% advance doesn't really reflect what most smaller institutions are experiencing. Today's report shows the median growth rate in credit union loans over the past year was 3.5%--far below the aggregate 10.0% advance," he said. The median result is obtained by taking growth rates at each of the nation's roughly 6,500 credit unions and ranking those rates from high to low and then choosing the middle value.
The agency's state-level analysis also showed that the median loan delinquency rate remained stable, median return on average assets was higher than the previous year, and share and deposit and asset growth both slowed from a year earlier.
The median delinquency rate dropped very slightly over the previous year to 0.9% nationally, down from 1%. North Dakota (0.2%) had the lowest median delinquency rate. The District of Columbia (1.7%) posted the highest median delinquency rate, followed by New Jersey (1.6%).
The NCUA report showed the median asset growth rate at 1.4% for the third quarter nationally. While positive, that growth rate was down from 2% during the year ending in the third quarter of 2013. The median growth rate was highest in North Dakota (5.7%) and South Dakota (4.2%).
In four states, median asset growth over the year was negative, indicating at least half of federally insured credit unions in those states had fewer assets at the end of the third quarter of 2014 than a year earlier. New Jersey (-0.8%) had the lowest median asset growth rate.
The median shares and deposits growth rate reported for the period was 1.1%--just half of the 2.2% it hit last year. The median growth rate for shares and deposits was highest in North Dakota (5.2%) and Wyoming (4.8%). The median growth rate for shares and deposits was negative in six states. New Jersey (-1.2%) showed the largest decline.
The NCUA report also highlighted that credit union membership growth remained positive for the period, but noted that the growth was due primarily to membership increases at credit unions with assets of more than $500 million.
Idaho (2.7%) had the highest median membership growth rate, followed by Alaska and South Dakota (both at 1.4%). Pennsylvania, Montana and New Jersey has the most negative membership results with all three experiencing a negative 1.5%.
Use the resource link to read more about the NCUA state-by-state analysis.