3.5% fewer credit unions, 6.3% more assets over 12 months ending March 31

The nation’s federally insured credit unions declined in number by 195 to a total of 5,335 as the system’s total assets, loans and membership continued to grow over the 12-month period ending March 31, according to first-quarter 2019 data released Thursday by the federal credit union regulator.

Total insured-credit union assets grew $90 billion, or 6.3%, to a total of $1.51 trillion, according to the data released Thursday by the National Credit Union Administration (NCUA). Additionally, loans outstanding rose $76 billion, or 7.9%, totaling approximately $1 trillion. Insured deposits grew $62 billion, or 5.5%, to a total of $1.19 trillion.

The report showed that of the 5,335 insured credit unions counted as of this March 31, 3,350 were federal credit unions and 1,985 were federally insured, state-chartered credit unions.

Total membership in insured credit unions grew 4.6 million to a total of 117.3 million members during the 12 months ending March 31, the data show.

Regarding the year-over-year decline in total insured credit unions, NCUA said that was consistent with long-running industry consolidation trends.

In other data, the year-over-year figures show that:

  • The loan delinquency rate declined to 58 basis points (bp), down from 66 bp.
  • The net charge-off ratio declined to 57 bp, down from 60 bp.
  • The loan-to-share ratio was 82.4%, up from 80.8%.
  • The credit union system’s net worth ratio was 11.14%, up from 10.89%.
  • Net income totaled $14.1 billion at an annual rate, growing $1.5 billion, or 11.9%.
  • The net interest margin was $46.1 billion, or 3.1% of average assets, up from $42.4 billion, or 3.1% of average assets.
  • The return on average assetswas 95 bp, up from 90 bp. The median return on average assets 56 bp, up 8 bp.

Also consistent with long-running trends, those insured credit unions with assets of at least $1 billion reported the strongest growth in loans, membership, and net worth over the year ending in the first quarter of 2019, the agency said. Credit unions with less than $100 million in assets reported declines in those categories over the year.

Federally insured credit unions by asset category, and their performance over the 12-month period ending March 31, break down as follows:

  • At least $1 billion: There were 315 insured credit unions in this category, up 21 from a year ago. These credit unions held 67% of system assets, or a total of $1 trillion. Loans outstanding were up 11.3%, membership was up 9.4%, and net worth grew 13.1%, the agency said.
  • At least $500 million and less than $1 billion: There were 255, up 10 from a year ago. They held $179.2 billion in total assets, or 12% of total system assets. Loans outstanding grew 3.2%, membership rose 1.3%, and net worth rose 4.6%.
  • At least $100 million and less than $500 million: There were 1,022, down 18 from a year ago. These credit unions held $227 billion in total assets, or 15% of total system assets. Loans outstanding declined 0.2%, membership fell 5%, and net worth “edged down” 0.4%.
  • At least $50 million and less than $100 million: There were 684, down 20 from a year ago. These credit unions held $49.2 billion in total assets, or 3% of total system assets. Loans outstanding declined 0.4%, membership was down 4%, and net worth was unchanged.
  • At least $10 million but less than $50 million: There were 1,682, down 79 from a year ago. These credit unions held $42.4 billion in assets, or 3% of total system assets. Loans outstanding grew 0.4%, membership dropped 5.1%, and net worth edged up.
  • Less than $10 million: There were 1,377, down 109 from a year ago. These credit unions held $5.7 billion in assets, or less than 0.5% of total system assets. Loans outstanding were down 2.2%, membership fell 7.9%, and net worth declined 3.6%.

NCUA Quarterly Credit Union Data Summary, Q1 2019

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