ARLINGTON Va.—Credit union member growth in March increased to 3.3% year over year while share growth fell slightly to 4.4% year over year according to NAFCU’s May Economic & CU Monitor.
The monthly poll of the trade association’s membership also shows that CUs’aggregate net worth ratio declined by eight basis points to 10.84% in March. Loan growth rose to 10.6% year over year in March, but survey respondents expect first mortgage loan growth to decline over the next 12 months. Every loan segment except for other real estate loans experienced accelerating growth during March.
The industry net interest margin was estimated at 2.87% in March, an increase of two basis points from the previous month.
ROA fell to 0.8% in March. In recent years, reductions in operating expenses have been offset by declining loan yield and fee income, NAFCU stated.
Credit union delinquency ratios declined by an estimated three basis points in March to 0.79%. “This is in line with figures immediately prior to the recession. In March, delinquencies decreased for credit card loans, new and used vehicle loans and first mortgage loans, while they increased for other real estate loans,” NAFCU said.
NAFCU noted that credit union delinquencies remain well below those of community banks. Meanwhile, credit union charge-offs have returned to pre-crisis levels. In March, the estimated net charge-off ratio rose by one basis point to 0.51%.