Credit Unions Continue Steady Improvement

Glatt Consulting’s Q3 2019 HealthScore data has been released and, once again, the industry continued its steady climb of year-over-year improvement by posting a score of 5.964. While this quarter’s score is a mere 0.51% increase versus Q3 2018, the latest industry score extends the streak of 23 straight quarters of year-over-year performance improvement when comparing like periods. However, this quarter’s growth of 0.51% is the smallest year-over-year increase during that time period. Despite the continued relative strength of the overall HealthScore, the accelerating weakness in both Loan Growth and Membership Growth is concerning and will present challenges in other categories going forward if this trend continues.

HealtScore year-over-year trend chart.
Year-Over-Year %Change in the Credit Union HealthScore

Credit unions performed better in 13 of the 17 HealthScore categories. Some notable positive score drivers include Asset Growth, and Cash & Short-Term Investments, which grew at their fastest rates in over two years. Return on Assets and Efficiency were both able to post year-over-year increases but their rate of growth slowed significantly versus Q2. Asset growth is not keeping pace with the growth in Operating Expenses, which is causing the slowdown in Efficiency.

Loan growth year-over-year trend chart.
Loan Growth Scores Continue to Drop

Across the industry, Loan Growth and Membership Growth once again experienced year-over-year weakness with scores down 22.57% and 7.52% respectively versus Q3 2018. The continued weakness in these two components is likely to result in the eventual decline of other components such as Income and Efficiency. The continued increases in Loans Per Member and Borrowings Per Member is helping insulate credit unions from the effects of declines in Loan and Membership Growth in the short-term. However, current trends show that the rate of decline in these two ‘Membership’ components is outpacing the growth in the ‘Per Member’ components of Loans and Borrowings. This dynamic will present operational challenges for the industry going forward if it continues. We will continue to monitor this situation closely.

Visit https://www.glattconsulting.com/healthscore/healthscore-trends for year-over-year score trends for all of our HealthScore components.

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If you are a credit union leader or employee, sign up to receive your own complementary HealthScore report.

We’ve added four new components to our complementary quarterly HealthScore report, offering additional valuable data for credit union subscribers. New additions include:

  • Industry score history
  • Industry year-over-year data
  • Asset peer section
  • Current quarter comparisons in the industry, peer, state, and local sections, which compares the CU’s current scores to the averages for the cohort in question.

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Complimentary Q4 2015 HealthScore/Ratio Data

Interested in researching how credit unions fared up through the 4th quarter of 2015? We have two downloadable resources available to aid in your assessment…

Q4 2015 HealthScore Report

Our Q4 2015 HealthScore Report charts trends for the overall HealthScore, year-over-year percent score change, and the breakdown of current component scores. In addition we include a table containing year-over-year percent changes in the overall HealthScore as well as component scores since 2003. Score change data is presented in a color-coded form for easier visual indication of areas of improving health and/or growing weaknesses. Finally, we present the 12 credit unions across the industry with the highest overall HealthScores, and also the 12 credit unions with the largest year-over-year HealthScore improvement.

Download the Credit Union Industry HealthScore Report

Key Ratios Spreadsheet

Our Key Ratio Spreadsheet contains key ratios for every credit union in existence as of Q4 2014. The spreadsheet is in Excel format to allow for easy sorting, charting, etc.

Download the Q42015 Key Ratio Spreadsheet

Other Resources

Are you a credit union leader? Interested in a complimentary (free!) HealthScore report for your credit union?  Let us know using the form below. Learn more about the report here.

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HealthScore Data Shows Long-Term Issues at Small Conserved Credit Union

Melting Ice Cubes

The National Credit Union Administration (NCUA) conserved Bethex Federal Credit Union last September, and ultimately liquidated the credit union on December 18, 2015. While the credit union’s long-time service as a community development financial institution was lauded, HealthScore trends shows the credit union faced a constant struggle to achieve stable financial health.  Continue reading “HealthScore Data Shows Long-Term Issues at Small Conserved Credit Union”

HealthScore Identifies Potential Weakness Even As Credit Unions Strengthen Overall

Glatt Consulting’s Credit Union Industry HealthScore, updated to include 3rd quarter 2015 credit union financials, is 2.601. The score represents a .52% decline from the previous quarter’s score, but a 2.92% improvement in score from the same period one year earlier. Though scores continue positive year-over-year trends overall, the number of credit unions with scores reflecting underlying weaknesses has increased. Continue reading “HealthScore Identifies Potential Weakness Even As Credit Unions Strengthen Overall”

Special Offer: HealthScore Report + Key Financial/Ratio Data

Special Q1 report and data offer! For $100 get a HealthScore Report on your credit union, and a spreadsheet containing key Q1 financial and ratio data for all federally-insured credit unions. Your credit union’s executives and volunteers alike can use the HealthScore report to benchmark performance against industry leaders and laggards at national, asset peer, state, and local levels – and use the spreadsheet to rank and research individual credit union performance according to your own interests.

To order the HealthScore report and spreadsheet for your credit union, simply complete the form below. We will process your order and invoice you for the balance, which you can pay either by check or credit card. The invoice and data files will be delivered electronically via email.

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