Follow The Leaders

This week, looks at the top 10 credit union leaders in operating income, average member relationships, SBA loans, and loan-to-share ratio.

Benchmarking against one’s peers can be a useful exercise for a credit union looking to grow its finances or improve its operations. Callahan’s industry analysts are especially adept at this kind of statistical analysis.

This week on, Callahan’s team of analysts look at the top 10 credit union leaders in operating income, average member relationships, SBA loans, and loan-to-share ratio.

Non-interest income is a source of stability and success for credit unions, but how can financial cooperatives maximize non-interest income without raising service fees for members? One way is through other operating income.

The National Credit Union Administration defines other operating income as, dividends from the NCUSIF, income or loss derived from selling real estate loans on the secondary market, interchange income, interest income earned on purchased participations not qualifying for true sales accounting under GAAP, and unconsolidated CUSO income and the adjustment to carrying value of loans used as the hedged item in a fair value hedging designation.

In Leaders In Other Operating Income Per Assets, Callahan analyst Liz Furman identifies the top 10 credit unions with more than $50 million in assets in annual other operating income as a percent of total assets.

Average member relationship excluding member business loans reached an all-time high of $16,980 for credit unions nationwide in the fourth quarter of 2015. That’s a 4.5% increase over year-end 2014, which suggests rates are favorable for members and the economy is strengthening.

Average member relationship offers a look at the average balance of loans and shares a member holds at the credit union. The credit unions’ pricing strategy, product offerings, and underwriting policies contribute to the depth of a members relationship, and an increasing average member relationship suggests members are choosing credit unions as their primary financial institution.

In Leaders In Average Member Relationship Growth, Callahan analyst Stephanie Clark identifies the top 10 leaders in year-over-year change in average member relationship.

The quarterly Anatomy Of A Credit Union profile in Credit Union Strategy & Performance offers an in-depth look at a high-performing credit union and the community it serves. In State In The Spotlight, we pay homage to the macro-level performance of the credit union’s home state. In this case, we profile the home state of Listerhill Credit Union, Alabama.

Established in 1953, the U.S. Small Business Administration (SBA) provides critical financing to small businesses, many of which are supported by credit unions through their field of membership.

According to Peer-to-Peer data from Callahan & Associates, SBA lending is becoming an integral part of the business loan portfolio for credit unions. Since 2010, the outstanding balance of SBA loans has more than doubled from $713 million to $1.6 billion. The average SBA loan is now $253,149, up from $108,058 in 2010.

In Leaders In SBA Lending Callahan senior industry analyst Michelle Parker identifies the top 10 leaders in SBA loan balances.

There are many macro and micro measures that gauge a credit union’s success. The most insightful metrics often are those that combine and blend various elements of performance into a single benchmark that covers multiple areas of an institution’s operations. The loan-to-share ratio is one such metric.

To learn more about this ratio and see the top 10 states in loan-to-share ratio, read The Dynamics Of The Loan-To-Share Ratio by Callahan director of industry analysis Sam Taft.

Happy Reading!

March 21, 2016

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