Q2 2021 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, 2021 data. 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.
- Net interest margin.
- Ratio of operating 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 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 has continued a strong increase, with ROA increasing again from 104 basis points in Q1 to 111 basis points in Q2. ROA for New England continues to lag the rest of the country with a ROA of 29 basis points in Q2 compared to 31 basis points in Q1.
Margins continue to be negatively impacted by historic low rates – the net interest margin for Q2 continued to fall for both the U.S. and New England.
Credit Quality
Credit quality remains very strong; the New England delinquent loans to total loans ratio continued to fall in Q2 of 2021, and the ratio was unchanged for the U.S. Charge-offs continue to be close to zero in New England at eight basis points in Q2 compared to seven basis points in Q1. On a national level, net charge-offs are much higher but also trending down.
Capital and Liquidity
Credit unions have experienced a pause to the downtrend in the loans to deposits ratio in Q2, with the ratio slightly higher compared to Q1 on both a national level and in New England.
With the slow-down in the reduction of the loans to deposits ratio, capital ratios have also stabilized. The average net worth ratio for New England as of June 30, 2021, is down only ten basis points compared to Q1 and the ratio is up 16 basis points for the same period in the entire U.S.
This information is publicly available, so it may be shared with others in your credit union, including board members. Please send us the email address of others that are interested in being added to our mailing list.
If you would like to discuss the information in further detail, we would be happy to do so.
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