NCUANCUA Regional Director Myra Toeppe released the NCUA Region III State of the Region Report on Friday.

Alabama highlights include: 

  • The collective net worth ratio of 11.62 percent for Alabama FICUs is in line with the region and higher than the national average. The return on average assets ratio increased to 0.66 percent, rising 5 basis points. An improved net interest margin is primarily responsible for the increase.
  • The loan delinquency and net charge-off ratios for Alabama FICUs are 1.00 percent and 0.60 percent, respectively. These ratios were similar to both the regional and national averages.
  • There has been steady loan growth at Alabama FICUs, which equaled 6.39 percent in 2014. The level of interest rate risk decreased over the past year, but remained elevated. The net long-term assets ratio measured 37.85 percent and represented the highest level in the region. While longer-term investments shrank slightly, long-term real estate assets increased modestly and impacted interest rate risk exposure.

Florida highlights include:

  • Florida FICU’s combined net worth ratio equaled 11.02 percent and rose 30 basis points in 2014. The return on average assets (ROAA) ratio improved slightly and reached 0.89 percent. This level exceeded regional and national averages and was attributed to greater fee and other operating income and a slightly stronger net interest margin.
  • Asset quality continued to improve throughout the state; however, key performance measures still remain relatively high. Delinquent loans were 1.21 percent of total loans, down 41 basis points from the previous year. Net charge-offs measured 0.75 percent and decreased 30 basis points for the same period. Despite this progress, both ratios remain notably higher than regional and national averages.
  • Loan growth at Florida FICUs measured 10.62 percent during 2014, one of the highest in the region. The majority of this growth, or 75 percent, was attributed to loans for new and used vehicles. First mortgage real estate loans represent the largest loan portfolio segment at 37.11 percent of total loans. Interest rate exposure declined during 2014 and the net long-term assets ratio of 32.68 percent is similar to regional and national results.

Review the full report for more on Alabama, Florida, and an overview of Region III.