It’s reporting season, and Callahan’s FirstLook provides an early look at credit union data. Looking for crucial insight about quarterly performance results weeks before the official data release from the NCUA? Callahan & Associates has you covered. Catch up on the latest trends below or dive deeper into the trends that matter to you with Peer Suite, Callahan’s online performance benchmarking tool. Schedule your demo today.
02.07.25 UPDATE
- Across the industry, credit unions are getting less bang for the buck when it comes to salaries. Revenue per salary and benefit expenses stalled at $3.86, the same as last quarter, after multiple years of growth. Meanwhile, full-time equivalent employee growth inched up just 0.9%. As revenue per salary and benefit expenses slow, credit unions might not feel pressured to add employees.
- Earnings are slowing. ROA for the industry declined to 0.63% from 0.68% one year ago. Interestingly, mean ROA is converging with median ROA. There was a difference of only two basis points at year-end. Median ROA has remained steady the past five years, whereas the mean has declined significantly, indicating the current level of earnings is a new development for larger credit unions but old hat for smaller ones.
- Credit unions have started to refocus on core members. Core deposits jumped quarter-over-quarter (see below), whereas indirect lending fell 3.6%.
02.03.25 UPDATE
The latest batch of performance figures brings the FirstLook credit union data set to 97% of the industry for the fourth quarter. So, what’s notable about year-end performance? And what does it suggest about today’s trends?
- One of the biggest data developments is that assets fell 0.1% quarter-over-quarter, driven by a 21.2% quarter-over-quarter drop in borrowings outstanding.
- In the share portfolio, regular shares (savings accounts) continued their exodus from credit unions. They dropped 2.6% year-over-year whereas share certificates grew 16.2%.On a quarterly basis, however, core deposits stemmed the outflow with 0.4% growth in regular shares, 1.6% growth in share drafts, and 2.3% growth in money market accounts. Meanwhile, the higher yield, longer duration products (i.e., IRAs/Keoghs and share certificates) grew modestly — 1% and 2.0% respectively.
- Across the loan portfolio, delinquency has increased. The delinquency rate on first mortgages was 0.79% at year-end, higher than the 0.56% reported one year ago. Other real estate delinquency, such as HELOCs, increased from 0.58% to 0.76%. Used auto loans jumped from 1.11% to 1.16%. New auto loan delinquency rose from 0.50% to 0.58%. Lastly, credit card delinquency jumped from 2.10% to 2.15%. As credit union members feel the pinch of economic headwinds, it has become harder to pay back debt obligations.
Watch Trendwatch On-Demand. Want to know what year-end data reveals about strengths and opportunities in the year ahead? Watch Trendwatch from Callahan & Associates to learn how today’s economic environment has impacted credit unions, what industrywide benchmarks say about performance at your shop, and more. Watch today.
Don’t Stop Here. With shares outpacing loans and indirect lending bringing in fewer members, credit unions focused on what they do best in the fourth quarter: serving core members. Dig into even more quarterly insights in “5 Takeaways From Trendwatch.”