Americans aren’t saving enough for retirement. That’s according to research from the U.S. Census Bureau. Maybe, then, it should come as no surprise that lending at credit unions continues to increase faster than shares to the tune of 10.7% versus 6.8%, respectively.
As of third quarter, the loan-to-share ratio was 81.3%, according to data from Callahan & Associates. Credit unions need to build deposits to fund their lending activity, and partnering with select employee groups (SEGs) or local businesses offers a natural solution to these needs.
Credit unions offer competitive products, services, and value to every member-owner; that’s what the movement is all about. And one way the system does this is by offering savings vehicles and financial planning services.
Many credit unions started as offshoots of companies that wanted to offer employees the benefits of credit union membership. Today, many credit unions are still interwoven with the parent company, which affects how the cooperative operates. When looking at the industry leaders in average IRA/Keough balances, SEG-based credit unions top the charts.
LEADERS IN AVERAGE IRA/KEOUGH BALANCES
FOR U.S. CREDIT UNIONS | DATA AS OF 09.30.17
© Callahan & Associates | www.creditunions.com
| Rank | State | Name | Assets | Average IRA/Keough | IRA/Keough Concentration | Loans To Shares | Field Of Membership |
|---|---|---|---|---|---|---|---|
| 1 | AL | Mead Coated Board | $52,641,176 | $98,857 | 28.98% | 22.25% | Manufacturing |
| 2 | NJ | Merck Employees | $1,975,578,674 | $98,559 | 24.85% | 9.66% | Manufacturing |
| 3 | IN | Solidarity Community | $235,025,549 | $82,823 | 5.03% | 97.06% | Community |
| 4 | AZ | Banner | $60,944,355 | $82,217 | 4.89% | 48.22% | Primarily Healthcare |
| 5 | NY | Self Reliance New York | $1,314,498,284 | $59,781 | 16.93% | 66.72% | Association |
| 6 | CA | Parsons | $208,614,069 | $59,456 | 32.48% | 50.75% | MCB – Other |
| 7 | OK | WEOKIE | $1,083,928,714 | $57,217 | 10.48% | 83.37% | Other |
| 8 | TN | Appalachian Community | $207,960,996 | $54,709 | 6.83% | 88.91% | Community |
| 9 | TN | Kingsport Press | $68,870,739 | $52,345 | 42.62% | 67.42% | Other |
| 10 | NY | Lufthansa Employees | $96,664,534 | $52,344 | 28.11% | 9.68% | Service – Transportation |
Source: Callahan & Associates.
2017 Callahan & Associates, Inc. All rights reserved
In today’s financial climate, there’s an opportunity for credit unions to better serve members and business by increasing IRA/Keough long-term savings.
Catch Up On 3Q 2017 Trendwatch
This must-attend quarterly event for credit union leaders covers performance trends, industry success stories, and areas of opportunity. Attendees will find insight they won’t find anywhere else weeks before the official NCUA data release.
