December 17, 2019

New NAFCU report shows weakening loan growth

Industry TrendsCredit unions have stronger loan growth than banks, though the margin is narrowing, according to NAFCU’s third-quarter CU Industry Trends report. The report also noted a weakening in loan growth, which is now below share growth for the first time since early 2013.

Other key data from the trends report:

  • After rising for four consecutive quarters, ROA fell in the Eastern region in the third quarter;
  • Nevada, Indiana, and Utah saw the highest ROA;
  • Wyoming, Puerto Rico, and Mississippi saw the highest loan growth; and
  • Oregon, Washington, and Montana saw the lowest delinquency rates.

The member-only quarterly report, sent to credit unions Monday, includes state-level maps highlighting state averages of select performance measures and delivering key trends based on NCUA data, both at the industry level and broken down by region, state and asset class. It also revealed that delinquencies are still declining for all but the largest credit unions.

The NCUA recently released its third-quarter data on the credit union industry, showing that federally insured credit unions' membership exceeded 119 million and assets grew $98 billion over the year.

NAFCU's member-only CU Performance Benchmark and Operating Expense reports, providing credit unions with individualized financial performance and expense analyses based on the most recent call report data, were sent to credit unions last week and are now available for download via NAFCU's website.

These reports, composed by NAFCU's award-winning research team, are useful tools for tracking credit unions' progress and comparing it against peer averages. Access more of NAFCU's research products here.