Lending Scene State-By-State

The credit unions' performance in second quarter of 2011 reflects local economies.


The financial health of credit unions varied significantly from state to state in the second quarter depending on regional economic conditions and the areas’ focus on credit unions. The state’s credit unions posted differences in balance sheet figures, loan volume, asset quality and member engagement. Here are some highlights from each states’ lending performance.

Balance Sheet
Virginia had the highest loan-to-share ratio, topping out at 88%. Two states, Hawaii and Delaware, had ratios below 50% at mid-year 2011.

Iowa, with a 9.4% loan growth rate, grew loans on the balance sheet at the fastest rate. Like Iowa, 32 of the 50 states and Washington D.C. posted positive year-over-year loan growth.

Loan Volume
Virginia credit unions, led by Navy Federal Credit Union ($44.4B, Merrifield, VA) and Pentagon Federal Credit Union ($15.1B, Alexandria, VA), had the highest loan volume, measured on a per-employee basis. Virginia was the only state to post levels above $1 million in loan volume per FTE year-to-date. North Dakota was second with $818,707 in loans per employee.

Rhode Island posted the highest increase in loan volume compared with a year prior. The Ocean State, which increased its loan volume by 32.3%, was among 43 states increased loan volume since mid-year 2010.

Asset Quality
Arkansas had the highest volume of consumer loans, topping out at 85.4%, while Vermont’s loan volume was largely comprised (57.0%) of first mortgages.

New Hampshire posted the lowest delinquency ratio – just 41 basis points. North Dakota took the second slot for lowest delinquency ratio and the top spot for net charge-offs.

Member Engagement

Rhode Island has the highest average loan balance. At nearly $30,000, the credit unions in the state active in business lending and real estate lending are helping drive this ratio. The state also takes the top spot in real estate loan penetration at 8.7%. Wisconsin follows closely with a real estate penetration rate of 8.3%.

Kansas has the highest auto loan penetration rate. More than one-quarter of members – 25.8% -- have an auto loan with their credit union.

South Carolina has the highest credit card penetration rate at more than 28%.