Credit Union Leaders In 5 Shares Metrics

Credit unions post share growth in all categories.

 
 

Strong share growth at U.S. credit unions continued into the second quarter of 2017. Annual growth at mid-year topped 8.1%, 16 basis points higher than the second quarter of 2016.

Loan balances also increased, up 10.8% year-overyear, and reached $923.3 billion. Loan growth outpaced share growth by 2.7%. As a result, the loan-to-share ratio increased 1.9 percentage points from June 30, 2016, to June 30, 2017, and reached 79.6%.

Regular shares and deposits totaled $433 billion and comprised the largest segment — 37.3% — of the deposit portfolio. The share of the deposit portfolio decreased for money market accounts, share certificates, and IRA/Keogh accounts, whereas share drafts and regular shares increased their pieces of the pie in the past 12 months.

 

 

 

Share certificates have continued to lose ground this year in proportion to other share types. As of June 30, 2017, certificates represented 17.9% of total shares. That’s a decline of 60 basis points since last year and a decrease of 5.4 percentage points over the past six years. Over the same six years, the portion of regular shares in the share portfolio has increased 5.0 percentage points from 32.3% to 37.3%. Share drafts also increased, 2.9 percentage points, over the period. As of second quarter they accounted for 15.5% of the share portfolio.

Credit unions posted positive annual growth for all shares types in the second quarter of the year. At 14.8%, share drafts grew the fastest. Credit unions ended the second quarter with $180 billion in balances for this deposit product. That’s 1.6 percentage points faster annual growth than the year-ago second quarter.

From a regional perspective, deposit balances expanded at the fastest rate at credit unions in the NCUA’s Western region. There, deposits grew 10.7% year-over-year. Credit unions in the Central region reported the slowest growth of any group at 6.8%.

Click through the tabs below to see the top 10 credit unions in each leader table.

 

 

See the rest of these tables and explore dozens more along with hundreds of pages of credit union performance data in the 2018 Callahan Credit Union Directory. It’s the gold standard for reliable insight. Read the digital download today.

CASE STUDY

Growing Shares With Monthly Savings Specials

Central Willamette Community Credit Union | Albany, OR | Assets: $273.5M | Members: 27,336

Like many credit unions enjoying a brisk lending business, Central Willamette Community Credit Union finds itself needing to attract deposits. So, the Oregon credit union met the challenge with a pair of summer campaigns designed to attract deposits and increase awareness of the institution.

At Central Willamette, the portion of the share portfolio occupied by CDs has steadily declined during the past 10 years. According to data from Callahan & Associates, share certificates comprised approximately 32% of Central Willamette’s total share portfolio in the second quarter of 2007. At second quarter 2017, that had fallen to 6.3%.

With interest rates finally rising, the credit union felt the time was right to test the savings appetite of its four-county market with a CD special.

After reviewing its own balance and competitors’ offerings, Central Willamette settled on a share certificate special with a 36-month term and two different rates — 1.6% for deposits lower than $100,000, and 1.75% for those greater.

“We hadn’t promoted any kind of rate special in quite some time,” says chief marketing and sales officer Amanda Lunger. “There hadn’t been a market until recently.”

The credit union attracted $1.2 million in deposits, and followed up the three-year special with an 18-month one.

Once members join, the credit union immediately begins to onboard with phone calls, letters, and emails, trying to get newbies to adopt stickier products such as online banking, bill pay, or direct deposit.

This summer, Central Willamette also ran a Summer Savings Contest to encourage savings among the area’s youth and inspire goodwill in its communities. For the contest, the credit union asked entrants a simple question: “If you could create money, what would your dollar bill look like?”

It then provided a sheet of paper on which participants, who had to have a Kid Kash or Youth Savings account, could draw and submit their ideas. Winners received $75 and all submissions hung in the credit union’s branches.

“People typically keep the first account they open with a financial institution,” Lunger says. “We are trying to get people in here young and have them grow with us.”

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Jan. 1, 2018


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