As credit unions continue to manage their performance, this report provides a quarterly benchmark on key performance indicators across the system. Filene contributor, Mike Higgins of Mike Higgins & Associates shares insights around six key indicators: operating ROA, net revenue growth, economy of scale ratio, relationship per member, product mix and excess reserves.
Credit Union Implications
As a credit union leader, it is important to keep a forward-looking perspective to anticipate how change will affect your organization.
NCUA 5300 data provides a way to look at financial trends and assess their potential impact. Traditional industry analysis has shortcomings due to GAAP (generally accepted accounting principles) that can lead to a distorted view of performance. Furthermore, the way financial information is presented is designed to satisfy a ledger style of reporting, not for managing the business. Using data from NCUA 5300 provides a way to look at financial trends and assess their potential impact.
Some of the key findings this quarter include:
- Another quarter of explosive loan growth
- Improvement on net interest margins
- Improvement on surplus funds yield
- Rate hikes caused unrealized losses on available for sale securities to increase
- Operating return on assets jumped significantly above the 10-year average
- Operating non-interest income grew but represents the lowest percent of non-interest expense in the past 10 years
With further rate hikes and intense competition for deposits expected, this report will help get your credit union ready for what's to come.
Download this report to find useful information and applicable concepts to evaluate your success, communicate results across your organization, and educate your board of directors.