Q1 2019 Peer Data for New England Credit Unions
Attached is our compilation of financial information for New England credit unions. Click PEER REPORT to view the June 30, 2019 data. In the data, 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. On the “all New England” tab, we have included comparable ratios for all credit unions in the U.S. and the June 30, 2018 averages for comparison.
Some quick observations on the results are as follows:
Performance New England credit unions continue to see margin expansion with a net interest spread of 331 basis points in 2019 compared to 318 basis points in 2018. New England credit unions are also seeing higher return on assets (ROA) at 48 basis points in June 2019 compared to 40 basis points in June 2018. Credit Quality Credit quality remains excellent. Delinquent loans to total loans are down to 94 basis points compared to 115 basis points as of December 31, 2018.
Liquidity New England credit unions on average continue to carry excess capital (equity to asset ratio of 13.05%) and liquidity (loan to share ratio of 69.33%) providing opportunity to grow loans and total assets. This information is publicly available, so it may be shared with others in your credit union, including board members.
As always, feel free to contact us with any questions.
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