ALEXANDRIA, Va. (6/6/12)--Arizona is leading the way in average return-on-assets (ROA) for the nation's credit unions, the National Credit Union Administration (NCUA) revealed in a new quarterly state-by-state review of the financial performance of credit unions.
The new state-by-state breakdown of key financial indicators is a new format for the agency. Released Tuesday, the review features chart- and map-based presentations of the average ROA, annualized loan growth and delinquent loan percentages of credit unions in each state. Information on each state's share of credit unions with positive return on average assets is also included.
NCUA Chairman Debbie Matz said the quarterly U.S. map review "is part of an ongoing effort by NCUA to provide timely, easy-to-use analysis of credit union data to the public."
The map highlights the diversity of credit union performance across the nation, reflecting local economic conditions, specific state strengths, and current challenges, and can help credit unions make better decisions and give the public a greater understanding of how credit unions are performing, she added.
The latest data are drawn from 2012 first quarter call reports.
Arizona's 123 basis point (bp)quarterly average ROA is closely followed by Virginia's total of 121 bp. Iowa, North Dakota and Alaska are not far behind, with ROA averages of 112, 109 and 106, respectively. ROA increased for credit unions in 40 U.S. states and territories between the first quarters of 2011 and 2012, the NCUA added. New Jersey, North Carolina, Nevada, West Virginia and Rhode Island all average ROA below 50 bp during the first quarter, the NCUA reported.
New Hampshire's average credit union loan delinquency rate of 0.49% was the lowest in the nation, while Montana, at 3.23%, had the highest average rate during the quarter. Delinquency rates in 41 states fell when compared to last year's numbers, according to the report.
Overall, the NCUA said most state-level credit union metrics are experiencing a recovery, but "credit union performance varies widely across the country." Mid-American states are experiencing the strongest recovery, "while states in the West and Mid-Atlantic tend to lag behind the rest of the country in performance," the NCUA said. Loan growth for North Dakota's credit unions averaged 12.16%, the highest of any state, while loan volume at Nevada's credit unions declined by 11.05% during the quarter.
The agency said in a release that the state-level financial indicators are compiled as state aggregate averages--"essentially asset-weighted averages for the state." Credit unions are assigned to each state by the location of their home office or headquarters, the NCUA added, and the agency release stressed that state averages would not necessarily reflect the performance of individual credit unions in each state.