Analyzing data is a critical component for planning for the future. CUData.com has recently released their Credit Union Industry Statistics and Performance Trends Report for Q2 2017. I'd like to share some highlights of the report with you and your financial institution. There's a lot of positives in the data below. Although the number of credit unions fell slightly, credit unions with $500M+ in assets grew slightly. Direct and indirect auto lending continues to be a bright spot and looks to be the greatest opportunity for growth for credit unions. We are also happy to see credit union membership continues to be on an upward trend.
- The overall number of credit unions (5,815) continues to shrink, although, the asset category size of $500M+ showed some slight growth in Q2.
- The average ROA for all credit unions remained stable at 0.77%. The average ROA for the $500M+ asset category size was slightly higher at 0.88%.
- Overall net income trend showed improvement over last year (YTD) at $5.14B thru Q2. Keep in mind, 2016 was a record year for net income in the credit union industry, so, hopefully, that trend will continue the rest of the year.
- Credit union membership continued to increase at a 12-month growth rate of 4.2%.
- Auto loan growth remained positive, although, the 12-month growth trend slowed to 13.0%, while the 6-month (annualized) growth trend was 13.6%.
New auto loan YTD (annualized) growth trend was 13.5%
Used auto loan YTD (annualized) growth trend was 12.7%
- Indirect auto loan growth remained strong with a 12-month growth trend of 20.3% and a 6-month (annualized) growth trend of 19.4%.
- Member business lending has shown remarkable growth with a 12-month growth trend of 16.8%.
- The average loan to deposit remained strong at 79.6%.
- Average loan delinquency remained steady at 0.75%, while net charge-offs increased slightly to 0.56% as compared to Q2 2016.
- Net Interest Spread Trends:
Yield on average loans 4.51%
Yield on earning assets 3.65%
Net interest spread 3.02%
Yield on average investments 1.54%
Cost of funds 0.63%
Do any of these figures line up with your credit union's performance? What strategies are you finding success in to help get your numbers at or above the Q2 averages? Feel free to share below. Maybe one strategy from an east coast credit union can help another on the west coast. Let's keep our credit unions strong and growing! Here's to another positive quarter!