Each quarter, our “Anatomy Of...” section provides an in-depth profile of a high-performing credit union and the community it serves. This quarter we chose MECU of Baltimore, Inc. But in State In The Spotlight, we pay homage to the equally important, macro-level performance of all the other cooperatives that share residence in that state.
POPULATION (IN MILLIONS): 5.93
UNEMPLOYMENT RATE: 5.6%
NUMBER OF CREDIT UNIONS: 97
NUMBER OF BANKS: 73
STATE CU QUICK FACTS
TOTAL ASSETS: $20.4B
TOTAL SHARES: $17.7B
TOTAL REVENUE: $217.4M
AVG. DELINQUENCY: 1.00%
TOTAL LOANS: $11.2B
TOTAL CAPITAL: $2.3B
TOTAL MEMBERS: 1.76M
AVG. OP. EXP. RATIO: 3.16%
The amount of loans made to members by Maryland credit unions in the first three months of 2014.
The percentage of Maryland credit union members with a credit card at their local financial cooperative, above the national average of 16.0%.
The number of new checking accounts opened at Maryland credit unions during 2013.
Maryland credit unions originated $921 million in loans to 130,500 members in the first quarter of 2014, helping drive 6.1% annual loan growth for the state. Consumer loans, such as credit cards and auto loans, made up 65% of the loans granted. Auto loans on the balance sheets of credit unions in this state rose 7.7% annually as of March.
Deposits at Maryland credit unions increased 1.9% annually as of March. Checking account balances rose 4.7% annually, with more than 28,500 new checking accounts opened in the past 12 months. Currently, 50.8% of members in the state have a checking account with their credit union.
Maryland credit unions have first quarter earnings that are a little more than half that of the national average (42 basis points return on assets versus a national average of 78). Similar to the national average, loan interest income has increased to help partly offset a decline in non-interest income, yet overall total income compared to the first quarter of 2013 was still down 3.9%.
Nearly 30% of the state's population belongs to a credit union, equaling more than 1.76 million member owners. More than 18,000 new members joined Maryland credit unions between March 2013 and March 2014, a growth rate of 1.0%.
The Bottom Line
Consumer lending is helping to drive loan originations and therefore overall loan growth in the state. In addition, the fact that checking accounts are being opened faster than new members are coming in indicates that these credit unions are successfully deepening their relationships with existing members. With such solid results at the beginning of the year, Maryland credit unions can likely look forward to a very positive 2014.