Idaho Credit Unions Surge In 3Q 2013

Credit union performance in the Gem State reflects the cooperatives’ popularity.
Mark Reed

Credit unions nationwide are reporting strong numbers in the third quarter, but perhaps none more so than the credit unions in Idaho. Thirty-four out of 49 Gem State credit unions are reporting third quarter data through Callahan Associates’ FirstLook program, which provides data before the official NCUA release.

In the third quarter, Idaho credit unions posted 16.0% loan growth, more than double the FirstLook national average of 7.4%. Share growth and member growth were also in the double digits. Assets on the balance sheet increased 10.7% versus the national credit union average growth rate of 4.9%. In fact, Idaho ranked first in asset, loan, share, and member growth.

Data as of September 30, 2013
Callahan Associates |

Idaho Credit Unions U.S. Average
12-Mo. Asset Growth 10.72% 4.88%
12-Mo. Loan Growth 15.98% 7.44%
12-Mo. Share Growth 10.01% 4.72%
12-Mo. Member Growth 10.23% 2.91%
Delinquency Ratio 0.50% 1.01%
Net Charge-Off Ratio 0.29% 0.57%
ROA 1.07% 0.80%

Although Idaho credit unions outpace their national peers in all balance sheet growth metrics, arguably none is as impressive or important as the 16.0% growth in the loan portfolio. Below is a breakdown of the loan portfolio and a comparison of the national average to Idaho credit unions’ average.

Data as of September 30, 2013
Callahan Associates |


Source: Callahan Associates’ Peer-to-Peer Analytics

Compared to national trends, Idaho credit unions posted faster loan growth in every component of the loan portfolio. The biggest gains were in the auto loan portfolio, which mirrors the national trend. New auto loans grew 31.4%; used auto loans grew 19.7%. Connections Credit Union ($131.0M, Pocatello, ID), which underwent a merger in the last year, led the way with 145% auto loan growth. Idaho United Credit Union ($27.5M, Boise, ID) and Potlatch No 1 Federal Credit Union ($593.7M, Lewiston, ID) rounded out the top three, with 54% and 52% auto loan growth, respectively.

One reason for the strong performance of credit unions is the popularity of cooperatives in the state. Credit unions reported a deposit market share of 18.6% in Idaho. Nationally, credit unions hold 8.9% of deposits. Credit unions originated more than 7.7% of first mortgages in the state; that’s higher than the 4.6% national average. And in auto market share, Idaho credit unions captured 39.0% of the market YTD in September. This is the second-highest total, behind Utah.

Chris Loseth, CEO of Potlatch No 1 Federal Credit Union, helped shed light on why credit unions in Idaho are thriving. People like to live in Idaho. Idaho is a popular state to live in now and there is an increase of people moving to Idaho. The economic outlook for the state is stable – unemployment is low, and Idaho wasn’t hurt as bad during the Recession and our recovery was quicker.

Potlatch No 1 has seen its overall lending portfolio increase 32.4% annually – the third fastest in the state. Loseth attributes this to three factors. When it comes to lending, it’s just factual information, good rates, and excellent service. That’s it.

Even as Idaho’s loan portfolio thrives, asset quality remains strong. The state had a delinquency ratio of just 50 basis points, half the national average. The 29-basis-point charge-off ratio was also strong.

All of these factors have helped the state post the fifth-highest return on assets in the nation. Idaho had an ROA of 1.07%, above the national average of 80 basis points. The higher ROA comes from higher non-interest income and lower provision for loan losses.

November 22, 2013

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