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While two-thirds of Connecticut credit unions had positive net income in the first quarter, the state continued to lose members at a higher rate compared to most other states, according to data released last week by the National Credit Union Administration.
The NCUA Quarterly Map Review showed that 67 percent of Connecticut credit unions had positive net income in the first quarter, below the U.S. average of 77 percent. At the end of 2020, 70 percent of the state’s credit unions had positive net income compared to 83 percent nationwide. As in 2019 and 2020, Connecticut’s share of credit unions with positive net income was among the lowest in the U.S.
Membership declined at a majority of Connecticut credit unions in the first quarter when compared to the first quarter of 2020. The state’s median membership growth rate was -1.2 percent, meaning that half of the state’s approximately 90 credit unions saw membership decline by 1.2 percent or more. The U.S. median rate was -0.5 percent.
The NCUA said 55 percent of U.S. federally insured credit unions had fewer members in the first quarter compared to the same period in 2020. The U.S. credit unions with falling membership tended to be small, the NCUA said, with 65 percent having less than $50 million in assets. Vermont had one of the highest median membership growth rates at 2.2 percent, behind only Alaska and Idaho. The New England state with the lowest median growth rate was Rhode Island at -1.4 percent.
Connecticut credit unions had a median year-over-year asset growth of 16.6 percent compared to 14.4 percent at the end of 2020. The national median in the first quarter was 17.1 percent compared to 14.2 percent at the end of 2020.
The state trailed the U.S. median for annualized year-to-date return on average assets in the first quarter. Connecticut was among the bottom five with a median of 18 basis points compared to the U.S. median of 38 basis points. The state was also near the bottom in 2020, with a median annualized ROAA of 19 basis points compared to the U.S median of 40 basis points.
The deposit surge that began at the start of the pandemic continued in the first quarter. The median year-over-year deposit growth was 19.5 percent in Connecticut, meaning half the credit unions saw growth at that rate or higher. The U.S. median deposit growth was also 19.5 percent. Connecticut in 2020 saw deposit growth of 16.3 percent, while the U.S. median last year was 15.9 percent.
Loans declined at most of the state’s credit unions in the first quarter, with Connecticut’s median year-over-year loan growth rate at -4.8 percent. The U.S. median was -0.4 percent. The state’s first quarter median delinquency rate was 46 basis points compared to the U.S. median of 34 basis points.
