Share Growth Returns to Historical Levels; Plus a Look at Which States Are Leaders, Followers

 ARLINGTON, Va.—Credit union share growth is returning to a historically normal level, according to NAFCU’s latest CU Industry Trends report.

The report notes the decline in share growth coincides with a reduction in investment growth.

The pace of industry consolidation is also growing, with 3.3% of insured credit unions declining over the past 12 months. In terms of earnings and capital adequacy, net interest margins are still in decline, with ROA dipping slightly in the first quarter as a result, according to NAFCU.

Other data points from the CU Industry Trends report include:

• Credit unions subject to the new risk-based capital (RBC) rule reported an average ratio of 17% in the first quarter, with 55% utilizing the complex credit union leverage ratio exemption from RBC

• Loan-to-share ratios are starting to grow again, but remain much lower than they were pre-pandemic
• Delinquencies are still at historically low levels, while loss reserves remain elevated
• Credit union productivity measures improved in 2020 as the industry paused hiring, but in the first quarter of 2022, employment grew at the fastest pace in over a decade
• Credit unions originated an all-time high of eight% of residential mortgage loans.

State-Level Performance

In addition, noteworthy state level results include:

• Oregon, Idaho, Nevada, Wyoming, and Iowa had the highest average membership growth
• Nevada, Idaho, Arizona, Iowa, and Puerto Rico had the highest share growth
• Hawaii, Maine, and New Hampshire saw the lowest loan growth