NCUA Q1 2021 Report Highlights Northwest Credit Unions’ Strength in Several Categories

The NCUA recently released its quarterly state-level report for Q1 2021. According to the data, Northwest credit unions continue to shine in nearly every category.

Over the year ending in the first quarter of 2021, credit unions in Idaho and Oregon saw some of the highest median asset growth in the country, with 25.5% and 23.9%, respectively, well above the national average of 17.1%.

While overall membership in federally insured credit unions continued to grow, at the median, membership declined 0.5%. In Idaho and Alaska, however, membership grew 4.3%, the highest in the nation. Credit unions in these states also saw the strongest loan growth, at 6.7% and 10.5%, respectively, as well as the highest annualized median returns on average assets (96 and 88 basis points). Idaho credit unions posted the highest median loan-to-share ratio (73%).

Nationally, 77% of credit unions had a positive net income in Q1 2021. The share of credit unions with positive net income was highest in Alaska and Idaho (both 100%), followed closely by Washington (94%). Oregon credit unions saw the second-highest growth in shares and deposits at 27.2%, nearly 8% higher than the national median.

“In addition to credit union growth, there are broader economic growth trends well above historical norms,” said John Trull, VP, Regulatory Advocacy at NWCUA. “For example, GDP growth is higher than anything we have seen in the last 40 years. Rapid home price increases are rampant across the nation, with the Boise Metro area setting the pace. There are also significant labor shortages and rapid increases in the cost of goods. I expect that regulators will be paying close attention to asset and liability modeling over the next 18 months.”

The NCUA Quarterly U.S. Map Review, available online here, tracks credit union performance indicators in the 50 states and the District of Columbia. The review also includes information on two key state-level economic indicators: unemployment rates and home price changes.

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Posted in Around the NW, NCUA.