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While most Massachusetts credit unions had positive net income in the first quarter, they continued to lose members at a higher rate than credit unions in most other states, according to data released Friday by the National Credit Union Administration.
The NCUA Quarterly Map Review showed that 72 percent of Massachusetts credit unions had positive net income in the first quarter, below the U.S. average of 77 percent. At the end of 2020, 80 percent of the state’s credit unions had positive net income, slightly below the national average of 83 percent.
Membership declined at a majority of Massachusetts credit unions in the first quarter when compared to the first quarter of 2020. The state’s median membership growth rate was -1.3 percent, meaning that half of the state’s approximately 150 credit unions saw membership decline by 1.3 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 growth rate was Rhode Island at -1.4 percent.
Massachusetts credit unions had a median year-over-year asset growth of 13.7 percent, one of the lowest growth rates in the U.S. The first quarter national median was 17.1 percent compared to 14.2 percent at the end of 2020.
The state also trailed the U.S. median for annualized year-to-date return on average assets in the first quarter. Massachusetts was among the bottom five with a median of 20 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 year-to-date ROAA of 23 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 18.2 percent in Massachusetts, meaning half the state’s credit unions saw growth at that rate or higher. The U.S. median deposit growth was 19.5 percent. Massachusetts in 2020 saw year-over-year deposit growth of 15.1 percent, while the U.S. median last year was 15.9.
Loans declined at most of the state’s credit unions in the first quarter, with a median year-over-year loan growth rate at -2.6 percent. The U.S. median was -0.4 percent. The state did have a lower median delinquency rate of 29 basis points compared to the U.S. median of 34 basis points.
