Peer Data for New England Banks and Credit Unions
First Quarter Report, 2024

Credit Unions:

Below is our summary of financial data for New England credit unions. In the data, each New England state has its own tab, and there is a final tab that includes all New England credit unions.

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

These key ratios are:

• Return on assets.
• Yield on loans less cost of funds.
• Ratio of operating expenses to gross income.
• Loans to shares.

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

On the “all New England” tab, we have included comparable ratios for all credit unions in the U.S. and comparable prior period ratios for New England credit unions.

Some quick observations on the results are as follows:

Performance

ROA for all U.S. credit unions continues a declining trend over the past three and half years to 70 basis points in Q1 2024. ROA for New England, which is typically less than the national average, followed a similar downward to 50 basis points in Q1 2024 after averaging 71 basis points during 2023.

Credit Quality

The credit quality landscape for New England credit unions has improved slightly since last quarter and remains slightly better than the average of all U.S. credit unions. New England delinquent loans to total loans ratio decreased 8 basis points to .86% while this ratio for the U.S. also decreased 6 basis points over the past quarter to .77%. Chargeoffs decreased in Q1 2024 in New England to an annualized rate of .27% after increasing the previous two quarters. All U.S. credit unions had an increase in annualized chargeoff rate of .80%. On a national level, chargeoff rates have been steadily increasing since 2021.

Capital and Liquidity

Credit unions in New England and on a national level have seen a loan to share ratio in a tight range for the last several quarters after trending downward in 2020.

The loans to shares ratio decreased for New England Credit Unions from 71% in Q4 2023 to 69% in Q1 2024, however on a national level, where the ratio has been significantly higher, the ratio of loans to shares decreased to 83% for Q1 2024. Capital ratios have also remained in a tight range for the last two years, with all U.S. credit unions having a capital ratio of just under 11%, and New England credit unions with 12.5% (virtually no change since last quarter).

Click PEER REPORT to view the March 31, 2024 data.

Banks:

Linked below is our compilation of peer financial information for the three months ended March 31, 2024. Consistent with past quarters, each New England state has its own tab, and there is a final tab that consolidates all the banks in New England.

The data includes a number of key credit quality, performance, and capital adequacy ratios. We also include simple averages for each state and comparable ratios for all FDIC-insured institutions in the $100 million to $1.0 billion and $1.0 billion to $10.0 billion ranges.

For community banks nationally:

• Net income for the quarter was lower than Q1 2023 due mainly to declines in net interest margin.
• Although net interest margin declined, margins for community banks were higher than the industry in general.
• Loan growth remained positive and was broad-based across most loan categories. 
  

In New England, for the 3-month period in 2024 as compared to the 12-month period in 2023:

• Net interest margins declined again.
• Net loan charge-offs were stable and lower than national averages.
• Non-performing loans to total loans increased slightly but remain lower than national averages. 

This information is all publicly available, so it can be shared with others in your bank, including board members.

Click HERE for the full report.

As always, feel free to contact us with any questions.