Credit unions grow in loans, savings, assets; but membership uneven

All states reported positive asset, loan and savings growth for credit unions at mid-year, but membership growth continues to be uneven, with larger credit unions continuing to lead in state, while others saw little or even declining growth in members, the NCUA reported today.

In a summary of state-by-state indicators for the first six months of 2017 for federally insured credit unions, NCUA said that, for the year ending June 30, median asset growth was 3.9%, median growth in savings was 4.1%, median loan growth was 4.4%; the median loans-to-shares ratio was 63%, the agency noted.

Asset growth, the agency reported, was fastest in Idaho (9.0%), followed by Oregon (8.3%); slowest growth was in the District of Columbia (0.1 %), followed by Arkansas (1.0 %).

Leading state lending (for the year ending June 30), NCUA said, were Nevada (13.4%) and Washington (10.1%). Median loan growth was slowest, the agency said, in Connecticut and New Jersey (both 0.9%), and Pennsylvania (2.1%).

In savings, Idaho again had the fastest median growth (9.8%) followed by Oregon (9.1%). The median growth rate in shares and deposits was lowest in the District of Columbia (1.1 %), followed by Arkansas and New Jersey (both 1.3 %).

Nationally, 80 % of federally insured credit unions had positive net income during the first half of the year, the agency report, up slightly from 79% in the same period in 2016. At least 57 % of credit unions in every state had positive net income during the first half of 2017, NCUA reported. Nevada (100%), and Oregon (97%) were the states with the highest shares of credit unions with positive net income. The share of federally insured credit unions with positive net income was lowest in the District of Columbia (57%) and Arkansas (67%).

While overall growth in credit union membership continued (with larger credit unions continuing to show membership growth), NCUA reported that at the median, membership declined 0.1%. Further, membership was unchanged at the median over the previous year.

Overall, NCUA stated, 50.3% of federally insured credit unions had fewer members at the end of the second quarter of 2017 than a year earlier. Median membership growth was negative in 23 states. About 75% of credit unions with declining membership had assets of less than $50 million.

Washington (2.7%) had the highest median membership growth rate over the year ending in the second quarter of 2017, followed by Oregon and Alaska (both 2.4%). At the median, membership declined the most in Pennsylvania (-1.4%) and the District of Columbia (-1.3%).

Credit union growth trends continue through 2nd quarter of 2017

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