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Credit Union Industry Statistics and Performance Trends: Q3 2016


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CUData.com recently released their Q3 2016 Credit Union Industry Statistics and Performance Trends report. This quarterly report includes valuable data and statistics for credit union leadership in an easily digestible format. The report contains comparative peer analysis and industry performance trends to assist executive leadership with their strategic planning initiatives and goal setting.  

Here are a few interesting highlights from the Q3 report:

  • The overall number of credit unions (5,967) continues to shrink, although, the asset category size of $500 million+ continues to show slight growth.

  • The average Return on Assets (ROA) percentage (0.78%) is the lowest it has been in the last five years, although, the average ROA for the $500 million+ asset category size remains healthy at 0.89%.

  • Membership growth continues to increase at a rate of 4% over the last 12 months.

  • Loan growth remains positive, although, the percentage of growth has flattened out.

    • New auto loans +16.2% YTD growth (annualized).

    • Used auto loans +13.4% YTD growth (annualized).

  • Indirect loan growth remains positive, although the percentage of growth has dipped slightly to 20.9% over the last 12 months.

  • Average loan-to-deposit is 78.5%.

  • Average loan delinquency remains steady at 0.77%.

  • The YTD Provision for Loan Losses increased significantly year-over-year from $2.75 billion to $3.58 billion.

  • Net Interest Spread Trend:

    • Yield on average loans 4.58% (annualized)

    • Yield on earning assets 3.58% (annualized)

    • Net interest spread 2.97% (annualized)

    • Yield on average investments 1.32% (annualized)

    • Cost of funds 0.61% (annualized)

It has been an interesting year for credit unions and lenders alike. While the number of credit unions continues to decline, growth in membership, loan growth, and asset quality remains strong. It will be quite interesting to see how changes in the economy, government leadership, and legislation in 2017 impact consumers and ultimately, lenders. I hope this information is beneficial is to you and your credit union.

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