Monday, March 7, 2016

Large CUs Prosper, Small CUs Struggle

Credit union industry data tell two stories about the credit union industry. For large credit unions it is the best of times, while for small credit unions it is the worst of times.

Federally insured credit unions with more than $500 million in assets continued to lead the system in most performance measures in the fourth quarter of 2015. With $867.5 billion in combined assets, these 481 credit unions held 72 percent of total system assets.

In fact, it is the 250 credit unions with at least $1 billion in assets that is fueling the industry's growth. These 250 credit unions hold $705.1 billion in assets of 58.5 percent of the industry's assets.

In addition, these large credit unions reported the fastest growth in loans, membership and net worth as well as the highest return on average assets. The return on average assets was 0.86 percent for credit unions with $500 million or more in assets.

On the other hand, smaller credit unions continue to struggle.

Membership in the smallest credit unions continued to decline in 2015. Credit unions with $10 million to $100 million in assets experienced a membership growth of minus 0.1 percent. Credit unions with less than $10 million in assets reported a membership growth rate of negative 1.4 percent.

Credit unions with less than $10 million in assets reported a return on average assets of 4 basis points. While these credit unions have the industry's highest net worth ratio of 15.05 percent, they also have the highest delinquent loan ratio of 1.89 percent.

No comments:

Post a Comment


The content is provided for educational purposes only, with the understanding that neither the authors, contributors, nor the publishers of this site are engaged in rendering legal, accounting or other expert or professional services. If legal or other expert assistance is required, the services of a competent professional should be sought.

Comments appearing in response to articles appearing on this site do not necessarily reflect the views of the ABA. ABA makes no representations regarding the truth or accuracy of commentary or opinions that may be posted in response to the articles that appear on this website.

The inclusion herein of any link to a website, either in the text of an article or in a comment, does not denote any approval, sponsorship, or endorsement by the ABA, and ABA is not responsible for the content or opinions expressed on those linked websites or related commentary. This content is not licensed to third parties sites and is not affiliated with any third party site. Any reference to the author or this content on any third party site on the Internet is not authorized by the ABA.

It is the policy of the American Bankers Association to comply fully with all antitrust laws. Certain discussions should be considered off-limits, including those that contain competitively sensitive data such as price and cost information, or statements that could be construed as reflecting an attempt or desire to control or influence a particular market or markets. Future pricing or other prospective competitive information should never be shared.