Wednesday, March 11, 2020

Fee Income at Civic FCU Was $886 Per Member for 2019

A reader recently pointed out that Civic Federal Credit Union (Raleigh, NC) is reporting fee income from services of almost $886 per member for 2019.

Fee income from services include overdraft fees, ATM fees, credit card fees, wire fees, account research fees, late fees, statement production fees, dormant account fees, transaction service fees, safekeeping fees, etc.

According to the credit union's December 2019 Call Report, it had $601,678 in fee income from 679 members.

Its fee income per member was the second highest among all credit unions -- only topped by North Bay Credit Union (Santa Rosa, CA) at $936.25 per member.

The credit union's fee income per member is well above the industry's standards.

The average fee income per member for the industry was $57.05. The median fee income per member was $49.56.

Additionally, fee income for 2019 as a percent of assets was 1.42 percent. In comparison, the industry average for 2019 was 0.66 percent with the median fee income to asset ratio of 0.52 percent.

Civic FCU's fee income as a percent of assets is in the industry's top quartile.

This credit union was chartered in December 2017 by the National Credit Union Administration for the purpose of making member business loans. It is possible that the credit union's business model accounts for the higher fee income per member.

1 comment:

  1. Fee income could also include revenue from selling member mortgages to investors or the federal government on the secondary market.

    That has the benefits of helping members lower their mortgage payments, creating income for the Credit Union and lowering future interest rate risk.



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