Wednesday, January 19, 2011

Credit Unions with the Lowest Borrower to Member Ratios

As of September 2010, NCUA reported that the borrowers to members ratio for federally-insured credit unions was 49.73 percent. The borrowers to members ratio is calculated by dividing the total number of loans outstanding by the total number of members.

The following table (click to enlarge) ranks the 50 credit unions (minimum of $100 million in assets) with the lowest borrowers to members ratios, as of September 30, 2010. The credit union with the lowest borrowers to members ratio is Latino Community in Durham, N.C. with a ratio at 9.03 percent.

Readers should be cautious not to make a generalization that credit unions with low borrower to members ratios are not meeting the credit needs of their members.


  1. You end your blog with, "Readers should be cautious not to make a generalization that credit unions with low borrower to members ratios are not meeting the credit needs of their members." But you don't suggest a better way to interpret the data. Why is that?

  2. Dear Anonymous:

    I can think of several reasons for low borrower to member ratios. First, consumers are deleveraging, so a CU is not seeing much demand for loans. Second, the demographics of the CU could result in low borrower to member ratio. Bulk of the membership could be older and passed the peak borrowing period. Third, a credit union could be primarily a business lender. According to NFIB, only about 30 percent of small businesses are actively borrowing. Moreover, NFIB has stated that given the lack of final sales, there is not strong demand for credit among small business owners.



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