Credit unions have posted a notable jump in first quarter income. According to FirstLook estimates from Callahan & Associates, first quarter income increased 8.5% year-over-year.
The 5,403 credit unions accounting for 91.6% of industry assets included in FirstLook reported income topped $14.4 billion as of March 31, 2016.
INCOME BREAKDOWN
For FirstLook credit unions | Data as of 3.31.15
© Callahan & Associates | www.creditunions.com
| Loans | $9.3 billion |
| Interest Refunded Rebates | -$3.9 million |
| Investments | $1.2 billion |
| Fee Income | $1.8 billion |
| Trading And Other Operating Income | $2.1 billion |
| Total Income | $14.4 billion |
Source: Peer-to-Peer Analytics by Callahan & Associates
With a few weeks to go before the NCUA officially releases first quarter data, early numbers reveal four notable highlights.
No. 1: First quarter total income reached a record-high.
Total first quarter income in 2016 topped $14.4. That’s a new record for credit unions. Year-to-date net loan income increased 9.1% year-over-year, driving income growth in the first quarter. Increased loan activity — credit unions originated more than $100.9 billion during the first three months of 2016 underpinned the jump in net loan income.
FIRST QUARTER INCOME BALANCES AND GROWTH
For all FirstLook credit unions | Data as of 3.31.16
© Callahan & Associates | www.creditunions.com
Source: Peer-to-Peer Analytics by Callahan & Associates
No. 2: Income composition holds steady.
Net loan income continues to account for the largest portion of income. At 64.5%, it is up two basis points from March 2016. Although year-to-date fee income is up 5.9% compared to March 2015, it comprises a smaller portion of total income, which suggests credit unions are finding other sources of income.
INCOME COMPOSITION
For all FirstLook credit unions | Data as of 3.31.16
© Callahan & Associates | www.creditunions.com
Source: Peer-to-Peer Analytics by Callahan & Associates
No. 3: Fee income per member increases.
Fee income comprises 12.9% of total income, a relatively small portion. However, reducing that and finding other sources of income can improve member satisfaction. Fee income per member rose $1 or 1.9% annually to $70. This remains lower than the 10-year average of $72 and the all-time high of $79 in fourth quarter 2012.
ANNUAL FEE INCOME PER MEMBER
For all FirstLook credit unions | Data as of 3.31.16
© Callahan & Associates | www.creditunions.com
Source: Peer-to-Peer Analytics by Callahan & Associates
No. 4 Non-interest income gains momentum.
Annual non-interest income balances rose 11.2% and topped $16.2 billion. Interest income, on the other hand, grew at a slower pace of 9.2%. Over the past three years, non-interest income has been gaining momentum and accounting for a larger component of total income.
INTEREST INCOME VS. NON-INTEREST INCOME
For all FirstLook credit unions | Data as of 3.31.16
© Callahan & Associates | www.creditunions.com
Source: Peer-to-Peer Analytics by Callahan & Associates
Register Today For Trendwatch
This must-attend quarterly event for credit union leaders covers performance trends, industry success stories, and areas of opportunity. Callahan bases its analysis on data gathered through its FirstLook program, which means attendees will find insight they won’t find anywhere else weeks before the official NCUA data release.