Total Credit Unions Drop Below 10,000 as Industry Increases in Financial Strength

The first-time collection of quarterly data on all credit unions shows a decline in the number of credit unions to 9,964 from the June 30 total of 10,031. However credit union total assets continue to grow to a total of $557.3 billion (12.7% annual growth).

 
 

The first-time collection of quarterly data on all credit unions shows a decline in the number of credit unions to 9,964 from the June 30 total of 10,031. However credit union total assets continue to grow to a total of $557.3 billion (12.7% annual growth).

The 1,830 credit unions over $50 million, which have always filed quarterly, now comprise 84% of total assets. The decline in smaller credit unions through mergers is inevitable in a low interest rate environment in which operating expenses take up a higher percentage of income. Over the past two years the average ratio of operating expenses to total revenue has climbed to 46.4% as yields have fallen. However, for credit unions under $50 million in assets, this ratio is 54.3%.

 

 

 

Dec. 5, 2002


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