According to the quarterly data released by the National Credit Union Administration (NCUA) for the first quarter of 2015 and analyzed by Callahan & Associates, Nebraska credit unions posted strong growth across a variety of metrics, including member growth and loan originations. Nebraska credit unions added 17,205 members between March 2014 and March 2015, reporting a growth rate of 3.7%, outperforming national credit unions who reported 2.9% growth rate. Total loan originations grew 3.3% year-over-year at Nebraska credit unions, reaching $330.8 million in the first quarter. Strongest growth was seen in first mortgage originations, which grew 17.1% year-over-year.
Nebraska Credit Union 1Q 2015 Results:
Nebraska’s loan portfolio expanded by 7.9% over the previous March to reach $2.7 billion, with all major loan categories growing year-over-year. Other loans and new auto loan balances grew at the fastest rate, increasing 14.4% and 10.3% since March 2014.
Nebraska credit unions reported revenue growth of 5.8% in the first quarter, increasing $10.7 million year-over-year, the largest growth since the recession. Loan interest income, investment interest income, fee income, and other operating income all posted year-over-year increases in the first quarter 2015.
Nebraska credit unions posted a 3.3% year-over-year increase in total loan originations. This is primarily attributed to the 17.1% growth in first mortgage originations and 8.6% increase in consumer loan originations, which offset the decline in other real estate and member business loan originations.
Nebraska’s share portfolio increased 3.4% from March 2014, reaching $3.4 billion at March 31, 2015. The overall increase in share balances is driven by growth in regular shares (5.7%), share drafts (7.2%), and money market shares (2.4%).
Total auto balances at Nebraska credit unions reached $1.3 billion as of March 2015, a $1 billion increase year-over-year.
Nebraska credit unions’ net interest margin reached 3.04% as of March 2015, surpassing the national credit union average by 20 basis points.
Nebraska credit unions reported a 15 basis point year-over-year increase in their net worth ratio to reach 10.7% as of March 2015.
The average member relationship (the outstanding combined loan and share balances per member, excluding business loans) at Nebraska credit unions reported year-over-year growth of 1.5% to top $12,764 as of March 2015.
Credit card balances continue to grow and recover since a slow in growth in the first quarter of 2015. Nebraska credit unions posted 8.1% growth in credit card loans outstanding to reach a balance of $72.3 million.
The percentage of first mortgage sales into the secondary market to total first mortgage originations at Nebraska credit union soared year-over-year, growing 24.4 percentage points to reach 67.1% as of March 2015. This is also 28.5 percentage points higher than what is reported by credit unions nationwide.
Membership growth increased at a faster rate at Nebraska credit unions compared with the national credit union average. Over the past twelve months, Nebraska credit unions added 17,205 members, posting 3.7% growth. This is higher than the national growth rate of 2.9%.
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