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Credit Union Financial Performance Indicators, 2023 Q1

Review the credit union system’s collective financials from Q1, 2023, 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.

Key findings from this quarter include:

  • Net revenue in hard dollars declinedIn a fixed-cost industry, the first sign of trouble shows up here.
  • Non-interest income in hard dollars declined.
  • Slowing growth in non-interest expense.
  • While inflation has declined as of May, the Federal Reserve has been raising the federal funds effective rate.

This is a quarter of building storm clouds. The industry remains well capitalized and can weather the storm, but it is going to be a challenge. 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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