Northwest Credit Unions Shine in NCUA Q4 Economic Report

Idaho, Oregon, and Washington credit unions saw strong performance in key areas such as loan, asset, and deposit growth.

The National Credit Union Administration (NCUA) Quarterly U.S. Map Review covers key indicators of financial health and viability including growth in assets, shares and deposits, membership, loans, and net income. The picture for Northwest credit unions in the fourth quarter of 2016 was strong. 

No time to digest a 13-page analysis? Here’s snapshot of what you need to know:

Median Annual Asset Growth

The median asset growth rate nationally was 3.2 percent. Oregon credit unions topped this performance category with 6.9 percent growth. Washington and Idaho credit unions also outperformed the national average. Washington posted 6.3 percent, and Idaho tracked 5.4 percent growth.

Median Annual Share and Deposit Growth

The national average in this category over the year ending in Q4 2016, was 3.3 percent. Washington credit unions hit share and deposits out of the park, posting a gain of 6.7 percent—the highest growth in the nation. Oregon credit unions were close behind at 6.6 percent, Idaho credit unions paced at 5.5 percent.

Median Annual Membership Growth

Nationally, NCUA reports, 51 percent of federally insured credit unions had fewer members at the end of Q4, 2016 than a year earlier. That was not the case for Idaho, Oregon, or Washington credit unions which saw membership increases of 1.3 percent, 1.6 percent, and 1.8 percent respectively.

Median Annual Loan Growth

In this “holy grail” category, the median growth rate in loans outstanding was 4.0 percent. Oregon and Alaska credit unions recorded the highest percentage of growth, both at 8.9 percent. Washington followed with 8.6 percent growth, and Idaho credit unions grew loans 7.6 percent.

Median Total Delinquency Rate

At the end of Q4, 2016, the median total delinquency rate among federally insured credit unions was 81 basis points (bp). Oregon credit unions saw the nation’s second lowest delinquency rates at 38 bp. Washington credit unions’ delinquency rate was 45 bp, and Idaho credit unions saw 52 bp delinquency.

Median Loans-to-Shares Ratio

The median ratio of total loans outstanding to total shares and deposits in Q4 was 64 percent nationally. Idaho credit unions posted an 87 percent loans-to-shares ratio. Washington credit unions’ loans-to-shares ratio ended the quarter at 75 percent, while Oregon credit unions’ ratio was 70 percent.

Median Return on Average Assets

The national average in this category was 35 basis points. Northwest credit unions outperformed that average. Oregon’s ROAA was 65 bp, Washington’s average was 55 bp, and Idaho credit unions’ ROAA was 49 bp.

Share of Credit Unions with Positive Net Income

NCUA reports 81 percent of federally insured credit unions had positive net income in Q4. Oregon credit unions showed 93 percent, while Washington credit unions had 90 percent, and Idaho credit unions had 89 percent.

The full report is posted online.