The third quarter 2018 Performance Report is now available online under the News & Information tab located on the League’s Web site.
The economy expanded 3.5% in the third quarter of 2018, building upon the strong growth of 4.2% reported in the second quarter. At 3.7%, the national unemployment rate in the third quarter was the lowest rate reported since 1969. Additionally, personal income and interest rates have started to increase across the economy. Credit unions nationwide contributed to this sustained growth, as the cooperative industry once again posted an expanding member base, loan portfolio and share portfolio. Mirroring the industry’s healthy financial metrics, Nebraska credit unions saw improvements across both sides of the balance sheet in the third quarter of 2018. The following key takeaways are highlighted in the report:
- Industrywide, total loan originations grew 6.5% year-over-year. Total originations at Nebraska credit unions, increased 3.9% to 1.3 billion. This is largely due to the non-real estate origination segment (primarily auto loans), which increased 6.6%
- Year-over-year, the loan portfolio grew 6.9 % in Nebraska. Loan growth in Nebraska accelerated 1.4 percentage points from the rate reported in 2017, as opposed to the national loan growth, which fell 1.0 percentage point over the same time period. Credit card loans were the fastest growing loan segment in the state, up 9.2% in the last 12 months. In the third quarter of 2018, Nebraska credit unions captured 18.4% of the auto market in the state. Total auto loans were up 7.0% year-over-year, while first mortgages grew 6.3%. Total loan balances outstanding in the state was just over $3.4 billion as of September 30.
- The delinquency rate in Nebraska declined 22 basis points annually to .073%, 6 basis points above industry average. Almost all major loan products reported decreases in delinquency rates except for other real estate loans, which increased 4 basis points. Auto delinquency decreased 33 basis points, while first mortgages and credit card delinquency fell 12 and 10 basis points, respectively.
- Nebraska credit unions net income growth (29.3%) was significantly higher than the 3.7% growth in assets, leading to a 15-basis point increase in ROA. At 0.76%, ROA in the state was lower than both national peers and regional peers, which reported rates of 0.96% and .089%, respectively.
- Total revenue in Nebraska expanded 11.8% from the levels reported in September 2017. This growth, coupled with closely-managed operating expenses, has led credit unions in the state to expand their net worth 6.5% from the levels reported in the first 9 months of 2017. Nationwide, net worth is 8.6% higher than year-to-date levels in 2017.
As of September 30, Nebraska credit unions served just under 526 thousand members for the first time ever. With 61 institutions, the average credit union in the state serves 8618 members. To date in 2018, two mergers have occurred in the state of Nebraska.