3 Metrics Maine Credit Unions Can Brag About

Growth in capital, assets, and deposits helped credit unions in the Pine Tree State best industry averages in 2013.

 
 

Credit unions across the country have capitalized on a strengthening economy and, as a result, have posted strong financials. Maine credit unions, in particular, turned out a solid financial performance last year, besting credit union industry averages for capital, asset, and deposit growth. For example, asset growth in 2013 for the state’s credit unions was 4.3% versus the national average of 3.9%.

The Maine Economy

Maine’s unemployment rate of 6.2% as of December 31, 2013, is below the national average of 6.7%, although both Maine and the U.S. averages decreased from year-end 2012 — one percentage point for Maine and 1.2% for the country. In 2013, the number of homes sold in Maine increased 13.6% compared to the number of homes sold during 2012, according to the Maine Association of Realtors. Nationally, home sales were up 9.1% in 2013 from the seasonally adjusted annual rate of sales in 2012 per the National Association of Realtors.

Lending Activity

During 2013, total originations at Maine credit unions increased 1.5% over 2012, reaching more than $1.8 billion. Consumer loans, primarily auto and credit cards, accounted for $892.9 million of those originations. This is up $64.4 million from 2012, or 7.8%. Total outstanding loan balances at Maine credit unions increased 7.1% annually. Used auto loans, which make up the second-largest portion of the loan portfolio, increased 11.6% during 2013 to $762.5 million.

ANNUAL LOAN GROWTH BY TYPE
Data as of December 31, 2013, for Maine Credit Unions
© Callahan & Associates | www.creditunions.com

maine_loan_growth_by_type

Source: Callahan & Associates’ Peer-to-Peer Analytics

Deposits

Share balances in Maine grew by 3.9% over the past 12 months, slightly above the 3.7% growth seen nationally. Share drafts were the fastest growing component in terms of percentages of the deposit portfolio. Maine credit union members added $59 million to their checking accounts during 2013 — that’s an annual growth rate of 8.7%. Share growth is slower than loan growth by three percentage points at Maine credit unions, which is comparable to the national credit union spread of four basis points.

Members And Capital

Maine credit unions added nearly 12,000 new members during 2013 as total membership increased 1.9% over 2012. Product penetration, which indicates members are using credit union products and services, also rose during the year. Mortgage penetration hit 10.3% at the end of 2013; that’s up 1.2 percentage points from 2012. This is also more than double the national credit union average of 4.4%. Maine credit unions also increased capital reserves 4.2% in 2013, faster than the national average of 3.2%. Total capital as of the end of 2013 was $669 million.

The performance of Maine credit unions in 2013 shows they are helping members who, in turn, are rewarding credit unions with greater loyalty and usage.

 

 

 

April 3, 2014


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