Is Alaska in a Boom or a Bust?
Alaska credit unions led the country with 92% reporting positive return on average assets during the first quarter, according to the NCUA’s Quarterly U.S. Map Review.
But even with a statewide average of 106 basis points of profit and 6.5% year-over-year loan growth, credit unions located in the largest state report they are still coming up short on loans.
Alaska’s economy is more volatile than most of the other states due to its dependence upon the energy sector, but Alaska’s unemployment rate is one of the best in the nation at 6.9%, according to the most recent report from the U.S. Department of Labor.
“The economy is a lot better off than what most Alaskans think it is,” said Scott Ambrose, a professor of economics at University of Alaska, Anchorage. “There’s a lot of controversy over the structure of Alaska oil taxes, which generate up to 90% of state revenue, but the Alaska economy is stable and getting stronger every month.”