Credit unions enjoyed solid growth in 2016 says NCUA

Federally insured credit unions saw growth across the board in 2016, according to the National Credit Union Administration.

The three major indicators, loan growth, asset growth, and deposit growth all increased for the year ended Dec. 31, 2016. Loan growth was 4.0 percent for the year, while median asset growth was 3.2 percent and median rate of growth in deposits and shares was 3.3 percent for the year. The numbers were all similar to 2015 figures.

Also, the median loans-to-shares ratio rose to 64 percent compared to 62 percent at the end of the fourth quarter of 2015.

The highest median growth rates for loans were in Oregon and Alaska (both 8.9 percent), followed by Washington (8.6 percent). Median loan growth was lowest in Connecticut (0.1 percent) and Pennsylvania (0.6 percent).

Median asset growth was fastest in Oregon (6.9 percent), followed by Nevada (6.4 percent). Median asset growth was lowest in Arkansas (0.5 percent) and the District of Columbia (1.1 percent).
The median growth rate in shares and deposits was highest in Washington (6.7 percent) and Oregon (6.6 percent). The median growth rate in shares and deposits was lowest in Arkansas (0.3 percent) and Louisiana (0.5 percent).

Nationally, 81 percent of federally insured credit unions had positive net income during 2016, up from 79 percent in 2015. States where the share of credit unions with positive net income was highest were Idaho and North Dakota (both 95 percent), followed by New Hampshire (94 percent).

The share of federally insured credit unions with positive net income was lowest in the District of Columbia (60 percent), followed by Arkansas (66 percent).

The return on average assets at federally insured credit unions was 35 basis points nationally during 2016, an increase from 33 basis points in 2015. Vermont (79 basis points) had the highest median return on average assets during 2016, followed by Nevada (70 basis points). The District of Columbia (6 basis points) reported the lowest median return on average assets, followed by Delaware (12 basis points).

Finally, 51 percent of federally insured credit unions had fewer members at the end of the fourth quarter of 2016 than a year earlier. Median membership growth was negative in 23 states. About 75 percent of credit unions with declining membership had assets of less than $50 million.