The National Credit Union Administration published its quarterly U.S. Map Review which breaks down key metrics of federally insured credit unions broken down by state. Among the numbers broken down are median four-quarter growth of assets, shares & deposits, members, and loans, as well as looking at delinquency, ROA, net income, and loan-to-share ratio. The most recent release of the data breaks down the growth from Q3 2023 through Q2 2024.
Although total assets of federally insured credits has grown, the median assets for all FCUs declined 0.2 percent, meaning half of credit unions were at negative 0.2 percent or below. However, while this could be seen as troubling, when compared with the same period a year ago, median growth rate in assets was negative 1.0 percent. Of the 50 states + DC, 25 of 51 were positive, with South Dakota leading the way at 4.4 percent and New Jersey struggling the most at -4.0 percent.
Similarly, although median growth in shares in deposits was higher for the four-quarter period ending Q2 2024 (-1.2%) than Q2 2023 (-2.4%), this continues to be an area affecting credit unions nationally. Only 15 of 51 states + DC were at a median growth of 0% or above.
NCUA also reported that nationally membership at federally insured credit unions has declined by 0.3 percent at the median, compared with a 0.2 percent increase the year before. Loan growth has also slowed down significantly with outstanding loans at the median increasing by only 2.4 percent, compared with 11.0 percent the year prior.
As reported previously, NCUA Chairman Todd Harper continues to urge vigilance, having said about the latest quarterly numbers: “The credit union system overall remains largely stable in its performance and is relatively resilient against potential economic disruptions. However, challenges persist across the system and at specific institutions. Notably, an increasing segment of credit union membership continues to experience financial strain as evidenced by a steady increase in the loan delinquency rate, charge offs, and borrowing using the NCUA’s payday alternative loan product. While interest rate and liquidity risks have ebbed recently, we are seeing growing signs of concern in loan performance, capital, and earnings as deposit levels have dropped. Credit union managers must continue to monitor their institution’s performance and balance sheets and act expeditiously to prevent small anomalies from growing into big problems.”
For the complete U.S. map breakdown, visit the NCUA website.
