Things ARE getting better! 2008 was a downer, 2009 was worse, but 2010 showed a bit of an encouraging turn-around! Overall earnings improved slightly (fewer CUs ended the year in the red!). Still, the number of credit unions continues to decline.
Good signs: The accounts-per-member number…the most critical metric…rose slightly. This resulted in an encouraging increase in the number of “High Performing” CUs at yearend. Let’s hope this particular trend continues…even in the face of the NCUA's troublesome (ongoing!) assessments levied in order to make good on the disastrous “corporate" debacle.
Again, it is increasingly clear that on-going survival for most credit unions is evermore dependent on (1) confirming market relevancy, (2) increasing the amount of banking we do per member, and (3) shifting from branch-based…to a tech-based virtual operation. This latter strategy is just starting to catch on, but clearly we have our work cut out for us!
If you have thoughts on any of this—pro or con—please share them with us!
| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
|---|---|---|---|---|---|---|---|
| #Credit Unions | 9,127 | 8,801 | 8,535 | 8,244 | 7,970 | 7,695 | 7,491 |
| (% increase over prior year) | -3.8% | -3.6% | -3.0% | -3.4% | -3.3% | -3.5% | -2.7% |
| # Members (millions) | 84.8 | 86.1 | 87.4 | 88.4 | 89.8 | 91.1 | 91.7 |
| (% increase over prior year) | 1.5% | 1.2% | 1.5% | 1.2% | 1.6% | 1.4% | 0.5% |
| Total CU Assets (billions) | $660 | $692 | $726 | $797 | $826 | $897 | $925 |
| (% increase over prior year) | 6.3% | 4.6% | 5.2% | 6.0% | 7.3% | 10.4% | 3.2% |
| Average Return on Assets | 0.89% | 0.84% | 0.80% | 0.64% | 0.30% | 0.17% | 0.50% |
| % of CUs w/negative earnings for year | 13.3% | 10.8% | 12.0% | 12.3% | 23.2% | 49.6% | 40.3% |
| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
|---|---|---|---|---|---|---|---|
| Average # Accts/Mbr* | 2.23 | 2.26 | 2.32 | 2.33 | 2.35 | 2.36 | 2.35 |
| Average # Deposit Accts/Mbr | 1.74 | 1.76 | 1.81 | 1.82 | 1.84 | 1.85 | 1.85 |
| Average # Loans/Mbr | 0.50 | 0.50 | 0.50 | 0.51 | 0.51 | 0.51 | 0.50 |
| Average Fee Income /Mbr | $60 | $64 | $69 | $73 | $77 | $78 | $78 |
| Average Ops Expense /Mbr | $242 | $254 | $270 | $286 | $299 | $301 | $327 |
| Average Net Earnings/Mbr | $70 | $67 | $66 | $55 | $27 | $17 | $50 |
*Note: “High Performing” Credit Unions must show an average of 2.5 accounts/member or better.
| 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | |
|---|---|---|---|---|---|---|---|
| % Members w/checking | 43% | 44% | 43% | 45% | 46% | 47% | 48% |
| % Members w/CDs | 9% | 11% | 13% | 14% | 14% | 13% | 12% |
| % Members w/MMAs | 6% | 6% | 6% | 7% | 7% | 8% | 8% |
| % Members w/IRAs | 5% | 5% | 6% | 6% | 6% | 6% | 6% |
| % Members w/Credit Cards | 15% | 14% | 14% | 14% | 14% | 14% | 15% |
| % Members w/Auto Loans | 16% | 17% | 17% | 17% | 17% | 17% | 16% |
| % Members w/1st Mortgage | 2% | 2% | 2% | 2% | 2% | 2% | 2% |
| % Members w/HE Loans | 3% | 3% | 3% | 3% | 3% | 3% | 3% |