Five Largest Credit Unions Continue to Excel in Key Measures

Preliminary fourth quarter data for the five largest credit unions shows strong performance and growth in many key areas.

 
 

The five largest credit unions have submitted their fourth quarter data, and the results show strong performance in many key areas. These credit unions finished 2007 on a strong note, posting impressive growth and an expanded focus on their members.

Below are a few key areas of success among the five largest credit unions:

Strong Balance Sheet Growth
• Navy Federal Credit Union ($33.0 billion in Merrifield, VA) – Navy posted double-digit growth in multiple key categories in 2007. Assets are up 21.7%, driven by a 28.4% increase in total loans outstanding. An aggressive branching strategy also led to 15.8% share growth during the year.

 

Solid Earnings Performance
• State Employees Credit Union ($15.0 billion in Raleigh, NC) – State Employees grew their bottom line 44.1% from this time a year ago. This growth was driven by increases in loan and investment income, as well as strong expense management. The results allowed SECU to pay out over $528 million in dividends to members.

Rewarding Members
• Orange County Teachers Federal Credit Union ($7.5 billion in Santa Ana, CA) – Orange County Teachers increased total dividends paid to their members by 33.9% in 2007. During the year, Orange County Teachers paid out 50% of their revenue to members.

Investing in Member Service Networks
• BECU ($8.1 billion in Tukwila, WA) – BECU posted membership growth of 11.2% in 2007. This resulted in a 15.3% increase in total shares and was helped along by the addition of 5 branches in 2007.

Expanded Member Relationships
• Pentagon Federal Credit Union ($11.2 billion in Alexandria VA) – Pentagon continued to focus on their members in 2007 and the results have shown. The average member loan balance is up over $200 to $13,826. The average member share balance followed the same trend, up over $850 during the course of 2007 to reach $12,267. Membership growth at PFCU grew 7.4% during the year.

Combined Results of the Five Largest Credit Unions

Data as of December 31, 2007

 

Total Assets

$74.9 billion

Total Members

6.1 million

12-mo. Loan Growth

18.1%

12-mo. Share Growth

13.1%

12-mo. Member Growth

6.6%

ROA

0.8%

Delinquency Ratio

0.6%

Net Worth / Assets

9.4%

Average Loan Balance

$14,723

Average Share balance

$9,929

Despite an economic slowdown and negative headlines across financial services in 2007, credit unions continue to respond to member needs. Callahan & Associates' First Look program currently has data on credit unions representing almost 30% of total industry assets. Credit unions can participate at no cost and begin benchmarking their 2007 performance.

Since this article was written, fourth quarter data has become available. To search for individual credit union results, you may use CU Search for raw data or CUSP Online for comprehensive metrics. Analysis of credit union performance is available through our Article Archive.

 

 

 

Feb. 4, 2008


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