iStock illustration

While a majority of Massachusetts credit unions had positive net income in the first half of 2022, the state’s credit unions had one of the lowest returns on average assets in the U.S., according to data released last week by the National Credit Union Administration.

The NCUA Quarterly Map Review showed that 69 percent of Massachusetts’ federally insured credit unions had year-to-date positive net income as of June 30, below the U.S. average of 79 percent. In the first quarter, 71 percent of the state’s credit unions had positive net income compared to the national average of 77 percent.

Membership declined at a majority of Massachusetts credit unions in the second quarter when compared to the second quarter of 2021. The state’s median membership growth rate was -0.7 percent, meaning that half of the state’s approximately 140 credit unions saw membership decline by 0.7 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.

Massachusetts credit unions had a median year-over-year asset growth of 2.9 percent compared to the U.S. median of 4.2 percent. The state’s credit unions in the first quarter had seen year-over-year asset growth of 4 percent compared to the U.S. median of 5.2 percent.

Only Nebraska had a lower median than Massachusetts for annualized year-to-date return on average assets in the second quarter. Massachusetts had median ROAA of 19 basis points compared to the U.S. median of 42 basis points. In the first quarter, Massachusetts had a median annualized year-to-date ROAA of 22 basis points compared to the U.S median of 42 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 3.8 percent in Massachusetts compared to the U.S. median of 4.8 percent. Massachusetts in 2021 had a median deposit growth of 8 percent, while the U.S. median that year was 9.6 percent.

After seeing loans decline in 2021, Massachusetts’ credit unions had year-over-year loan growth for the second straight quarter. Massachusetts’ median year-over-year loan growth was 5.2 percent, below the U.S. median for the second quarter of 7.2 percent. In 2021, Massachusetts had been one of six states that saw loans decline for the year. The state’s median delinquency rate in the second quarter was 31 basis points compared to the U.S. median of 38 basis points.