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While most Massachusetts credit unions had positive net income in the first quarter, the state’s credit unions continued to lose members at a higher rate than most other states, according to data released this week by the National Credit Union Administration.
The NCUA Quarterly Map Review showed that 71 percent of Massachusetts’ federally insured credit unions had positive net income in the first quarter, below the U.S. average of 77 percent. In 2021, 74 percent of the state’s credit unions had positive net income compared to the national average last year of 84 percent.
Membership declined at a majority of Massachusetts credit unions in the first quarter when compared to the first quarter of 2021. The state’s median membership growth rate was -1.1 percent, meaning that half of the state’s approximately 140 credit unions saw membership decline by 1.1 percent or more. The U.S. median rate was -0.4 percent. New Jersey had the largest median decline at -2.3 percent, followed by Rhode Island at -1.9 percent.
The NCUA said about 55 percent of U.S. federally insured credit unions had fewer members at the end of the first 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 3.3 percent, respectively.
Massachusetts credit unions had a median year-over-year asset growth of 4 percent compared to the U.S. median of 5.2 percent. Massachusetts fell into the bottom five states for year-over-year asset growth in the first quarter. The state’s credit union’s last year saw asset growth of 6.4 percent. The national median in 2021 was 8.8 percent.
The state also trailed the U.S. median for annualized year-to-date return on average assets in the first quarter. Massachusetts had a median return on average assets of 22 basis points compared to the U.S. median of 42 basis points. The state also trailed the rest of the U.S. in 2021, with a median annualized year-to-date ROAA of 29 basis points compared to the U.S median of 50 basis points.
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 5.7 percent in Massachusetts, the same as the U.S. median. Massachusetts in 2021 saw median year-over-year deposit growth of 8 percent, while the U.S. median that year was 9.6 percent.
While Massachusetts remains near the bottom among states for loan growth, the state did see some growth in the first quarter. Massachusetts’ median year-over-year loan growth was 1.1 percent, below the U.S. median for the first quarter of 4.6 percent. In 2021, Massachusetts was one of six states that saw loans decline for the year. The state did have a lower median delinquency rate in the first quarter of 25 basis points compared to the U.S. median of 31 basis points.
