Peer Data for New England Banks and Credit Unions

Third Quarter, 2024

We are pleased to share the third quarter 2024 peer data for both New England banks and credit unions. This report provides a detailed analysis of key financial metrics, helping you stay informed about the latest trends in credit quality, performance, liquidity, and capital adequacy. The data for each New England state is presented individually, with a consolidated view available for all institutions across the region.

Peer Data for New England Banks

The bank data, available through the link below, covers the six months ending September 30, 2024. Consistent with past quarters, each New England state has its own tab, and there is a final tab that consolidates all the banks in New England.

The data includes a number of key credit quality, performance, and capital adequacy ratios. We also include simple averages for each state and comparable ratios for all FDIC-insured institutions in the $100 million to $1.0 billion and $1.0 billion to $10.0 billion ranges.

For community banks nationally:

• Net income for the quarter increased from Q2 2024 due mainly to an increase in net interest income.
• Net interest margin increased over Q2, and was flat compared to the same period in 2023
• The provision for credit losses increased 14% over Q2 and 31% over the same period in 2023.
• Loan growth remained positive and was broad-based across most loan categories.

In New England, for the 9-month period in 2024 as compared to the prior quarter:

• Net interest margins were stable, with slight increases in both yields on earning assets and cost of funds, however margins remain lower than national averages.
• Net loan charge-offs were level and remained lower than national averages.
• Non-performing loans to total loans increased but remained lower than national averages.

This information is all publicly available, so it can be shared with others in your bank, including board members.

Click here to view the full report.

Peer Data for New England Credit Unions

Our report includes financial data for New England credit unions for the period ending September 30, 2024. 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.
• Yield on loans less cost of funds.
• Ratio of operating expenses to gross income.
• Loans to shares.

From there, we rank the credit unions across each of these key ratios as well as total assets 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 was 73 basis points which is consistent with the previous four quarter average. ROA for New England, which is typically less than the national average, increased 2 basis points for Q3 2024, exceeding the national average of 72 basis points.

Credit Quality

The credit quality landscape for New England credit unions has remained consistent since last quarter and remains slightly better than the average of all U.S. credit unions. New England delinquent loans to total loans increased 7 basis points to .93%. This ratio for the U.S. also increased 7 basis points over the past quarter to .91%. Chargeoff rates in Q3 2024 in New England were consistent at .23%. All U.S. credit unions had a slight decrease in annualized chargeoff rate of .78%. Both New England and all U.S. credit unions had virtually no change in this rate compared to Q2 2024.

Capital and Liquidity

Credit unions have seen a loan-to-share ratio in a tight range for the last several quarters after trending downward in 2020.

The loans-to-shares ratio for New England Credit Unions was 71% in Q3 2024. On a national level, where the ratio has been significantly higher, it was 84% for Q3 2024. Capital ratios have also remained in a tight range for the last two years, with all U.S. credit unions having a capital ratio of 11.1% and New England credit unions with 13.1%, an increase of 28 basis points from Q2 2024.

Click here to view the full report.