1st Quarter 2013 New Jersey CU Stats Report Updated with Analysis

Wednesday, July 10, 2013 11:22:00 AM

HIGHTSTOWN, N.J. – NJCUL offers member credit unions summaries of New Jersey credit union quarterly statistics compiled by CUNA. The report for first quarter 2013 was made available last month, and is now updated with an analysis of the findings.

The first quarter 2013 operating results at New Jersey’s 199 credit unions reflect surging savings balances in the quarter as normal strong seasonal growth combined with large period-end payday inflows. As a result, both the state aggregate loan-to-savings and capital ratio declined marginally in the quarter. Loan delinquencies declined significantly in the quarter and bottom-line earnings increased compared to full-year 2012 results.

More specifically we see:

  • Savings balances ballooned 4.6% in the quarter (a 18.4% annualized rate) led by big increases in share draft account automatic payday deposits. While loan growth was relatively weak (0.1% in the quarter), the state’s credit unions granted a total of $570 million in loans in the first quarter—a 10% increase over first-quarter 2012 results and the largest first quarter volume since 2008.
  • First quarter earnings came in at an annualized 0.48%—a significant jump over the 0.33% full-year 2012 result. Fast asset growth (due to big deposit inflows) overwhelmed healthier earnings to produce a marginal decline in the New Jersey credit union aggregate capital ratio—though the March 2013 aggregate is nearly 3.5 percentage points above the 6% regulatory minimum credit unions need to be considered adequately capitalized under PCA net worth standards. In all, 92% of the state’s credit unions now are well capitalized with PCA net worth exceeding 7% of assets.

The report is available for download at www.njcul.org/nj-cu-statistics.aspx.

The statistic report is available to NJCUL member credit unions only. A password is required to access this information. To request a login, visit www.njcul.org/Secure/Register.aspx.

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