Northwest Credit Unions Show Strong Growth in Q3

Northwest credit unions attracted members at a faster pace than the national average and recorded increases in asset growth, return on average assets (ROAA) and net worth in the third quarter of 2013, an analysis of national data by the Northwest Credit Union Association (NWCUA) shows.

“The positive trends continue,” says Dan Hein, the NWCUA’s vice president of finance, who reviewed state-level data released this week by the National Credit Union Administration. “Northwest credit unions continue to post strong ROAA because of continued growth in loans and membership,” Hein says.

The NCUA’s third-quarter report, released Monday, showed loan growth surging fastest in Idaho and Rhode Island; membership growing fastest in Idaho and Virginia; and Maine, Alaska and New Mexico recording the highest positive net-income share.

Washington credit unions recorded the second-highest ROAA in the country for Q3 at 117 basis points (Utah had the highest annualized ROAA at 144 basis points), while Oregon reported a solid 86 basis points. Nationally, the annualized return on average assets at federally insured credit unions was 80 basis points in the first three quarters of 2013, compared to 86 basis points at the end of the third quarter in 2012.

Hein’s snapshot of Q3 data also shows:

  • Membership in Oregon and Washington credit unions grew by 3.4 percent in the year ending Sept. 30. That tracks ahead of the national average of 2.2 percent, Hein says. At the end of the third quarter, 4.5 million consumers belonged to a Northwest credit union.
  • Delinquency ratios continue to trend downward in the Northwest, with lower ratios in Oregon and Washington than the national average of 102 basis points. Washington’s ratio was particularly low, at 64 basis points. However, the charge-off ratio for Washington credit unions was 66 basis points, Hein says, which is higher than the national average of 57 basis points.
  • Credit unions in both Oregon and Washington recorded a lower net worth than the national average of 10.65 percent, Hein says. However, their strong ROAA helped to increase the net worth for both states in Q3, and both states posted stronger annualized growth than the national average over the past year.
  • Collectively, Northwest credit unions showed slightly less annual loan growth than the national average for annual loan growth reported in the third quarter. This was primarily due to slightly less growth in vehicle loans and first mortgages, Hein says. But Northwest credit unions continue to have a high loan-to-share ratio of 72 percent, compared to the national average of 70 percent.
  • Oregon and Washington credit unions held assets of more than $52.4 billion at the end of the third quarter, Hein says. That represents an annual asset growth rate of 5.6 percent, compared to the national average of 4.3 percent.

For more information about the performance of federally insured credit unions, read the NCUA’s September 2013 Call Report online here. A summary of the industry’s third-quarter performance is available here, and financial-trends information for federally insured credit unions is available here.

The NCUA’s Quarterly U.S. Map Review, available here, tracks performance indicators for federally insured credit unions in the 50 states, the District of Columbia, Puerto Rico, Guam and the Virgin Islands. The review also summarizes key state-level economic indicators, including unemployment rates and home price changes.

 

Questions? Contact Gary Stein: 503.350.2216, gstein@nwcua.org.

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