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From Northwest Credit Union Association

NWCUA Regulatory Advocacy Update: Northwest Credit Unions Fare Well in Federal Regulator’s Q2 State-by-State Review

The weekly Regulatory Advocacy Update outlines the NWCUA’s efforts to reduce the regulatory burden on credit unions and protect the larger movement. Included here is an update on the NCUA Economic Review for 2012’s second quarter.

Credit unions in Oregon and Washington, as an aggregate, fared well in the National Credit Union Administration’s (NCUA’s) Economic Review, which covers several key indicators of credit union financial health and viability.

Credit unions nationwide gained nearly 100 million new members over the year ending in 2012’s second quarter, and while the majority of state-level credit union metrics are experiencing a recovery, the NCUA Quarterly U.S. Map Review reveals that credit union performance varies widely across the country.

Total assets at credit unions in Oregon and Washington grew on average by more than 8 percent, as did the number of shares and deposits. In both categories, Oregon and Washington outperformed the national average.

In Washington, return on average assets (ROAA) was greater than 100 basis points, while Oregon credit unions fell just below 100 basis points. In the second quarter of the 2012 fiscal year, both states were in the top third nationally. For context, New Jersey’s ROAA was a national-low 36 basis points, while Arizona, another Region V state, topped the list with 149 basis points. 

“Looking at our region, there are a lot of positives,” said Northwest Credit Union Association (NWCUA) Director of Regulatory Advocacy John Trull. “These numbers help credit unions plan for the future. Regulators watch the trends and compare individual credit unions to those trends.”

Both Oregon and Washington were around the 74-percent national average of credit unions that had positive ROAA in the second quarter.

Loan delinquency rates were below 2 percent in both states. The NCUA suggests that delinquency rates fell in part due to new reporting requirements for troubled debt restructurings (TDRs). Charge-off rates for credit unions in Oregon and Washington were near the national average, while annual loan growth was below the national average in Oregon.

 

The NWCUA Regulatory Advocacy team works with state and federal regulators to help reduce the regulatory burden on credit unions and protect the credit union movement. The Association encourages members to participate in the regulatory process. If you have any questions on these or any regulatory issues, please contact Director of Regulatory Advocacy John Trull at jtrull@nwcua.org, or at 503.350.2209.

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