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Peer Data for New England Credit Unions
4th Quarter Report, 2018

Attached is our compilation of financial information for New England credit unions. Please CLICK HERE to view the December 31, 2018 data. As was done last quarter, each New England state has its own tab and there is a final tab that includes all of the credit unions in New England.

The data includes a number of key credit quality, performance and capital adequacy ratios. We then break-out certain ratios that we consider important in determining financial performance and long-term viability of credit unions. 

These key ratios are:
  • Return on assets
  • Net interest margin
  • Yield on investment portfolio
  • Ratio of expenses to gross income
  • Loans to shares

From there, we rank the credit unions across each of these key ratios and determine an overall ranking based on the average of all of these ratios.

Some quick observations on the results are as follows:
Performance

New England credit unions continue to see some margin expansion in 2018, margins are up 15 basis points over the last 12 months. This has had a positive impact on expense ratios and a significant increase in return on assets (ROA). ROA increased from 28 basis points in 2017 to 42 basis points in 2018.

Credit Quality

Credit quality remains excellent. Delinquent loans to total loans are down to 115 basis points compared to 124 basis points in 2017 and net charge-offs for 2018 are only 34 basis points.

In addition, the allowance for loan losses coverage ratio has expanded to 4.51x from 3.76x. The higher the coverage ratio, the less the financial impact of CECL will be.

Liquidity

New England credit unions on average continue to carry excess capital (equity to asset ratio of 13.10%) and liquidity (loan to share ratio of 70.94%) providing opportunity to grow loans and total assets.

 

If you would like to discuss the information in further detail, we would be happy to assist. Please contact your Whittlesey advisor for more information. 

 

Drew Andrews
Managing Partner
860.524.4430 | aandrews@WAdvising.com                                                                                            

 

Mario Solari
Partner

860.524.4494 | msolari@WAdvising.com

 

Kimberly Napp
Partner

860.524.4437 | knapp@WAdvising.com

 

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