While most Connecticut credit unions had positive net income in the first half of 2022, the state’s credit unions continued to lose members at a higher rate than most other states, according to data released earlier this month by the National Credit Union Administration.
The NCUA Quarterly Map Review showed that 81 percent of Connecticut’s federally insured credit unions had year-to-date positive net income as of June 30 compared to the U.S. average of 79 percent.
Membership declined at a majority of Connecticut credit unions in the second quarter when compared to the second quarter of 2021. The state’s median membership growth rate was -0.9 percent, meaning that half of the state’s approximately 80 credit unions saw membership decline by 0.9 percent or more. The U.S. median rate was -0.4 percent. New Jersey had the largest median decline at -2.1 percent, followed by Rhode Island at -1.7 percent.
The NCUA said about 55 percent of U.S. federally insured credit unions had fewer members at the end of the second quarter compared to the same quarter in 2021. The U.S. credit unions with falling membership tended to be small, the NCUA said, with about 60 percent having less than $50 million in assets. Credit unions headquartered in Alaska and Wyoming had the highest median membership growth rates of 4.3 percent and 3.7 percent, respectively.
Connecticut credit unions had a median year-over-year asset growth of 2.9 percent compared to the U.S. median of 4.2 percent. Connecticut credit union’s annualized year-to-date return on average assets was 54 basis points compared to the U.S. median of 42 basis points, according to NCUA data.
While the state’s credit unions continued to see deposit balances increase, the pace of growth has slowed. The median year-over-year deposit growth was 3.5 percent in Connecticut compared to the U.S. median of 4.8 percent. Connecticut in 2021 had a median deposit growth of 8.6 percent, while the U.S. median that year was 9.6 percent.
Connecticut’s credit unions continue to see year-over-year loan growth. The state’s median year-over-year loan growth was 6.4 percent compared to the U.S. median for the second quarter of 7.2 percent. In 2021, Connecticut had median loan growth of 1.6 percent compared to the U.S. rate that year of 3 percent. The state’s median delinquency rate in the second quarter was 41 basis points compared to the U.S. median of 38 basis points.
