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Credit Union Financial Performance Indicators, 2022 Q4

Review the credit union system’s collective financials from Q4, 2022, and dive into insights on key findings and trends to help your credit union make adjustments.

  • Mike Higgins Managing Partner at Mike Higgins & Associates

Executive Summary

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.

Key findings from this quarter include:

  • Operating return on assets fell but is still above the 10-year average
  • Another quarter of above average loan growth
  • Due to rate hikes, surplus funds yield improved
  • Cost of funds is starting to move rapidly
  • Relationship share balance declined

In the wake of the collapse of Silicon Valley Bank and Signature Bank, and an increasingly intense competition for deposits, understanding trends and key financial performance indicators in the industry are more important than ever. 

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.

Filene thanks its members and Inner Circle sponsors for helping support this research from the Center for Performance & Operational Excellence.

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