The continuation of a low interest rate environment and rapid-fire legislative changes have kept financial institutions on their toes in the search for sustainable non-asset-based income solutions. The potential effects of the Durbin Amendment may impact the non-interest income strategies of some institutions, but the cooperative system has a number of ways to develop or pioneer new income opportunities, including operational sources and CUSO income.
A higher percentage of non-interest income in relation to total income may indicate a higher reliance on income generated from areas other than asset-based sources such as interest on loans and investments. The ratio is most influenced by three strategic decisions: the credit union's lending philosophy, the credit union's philosophy toward spread management, and the credit union’s emphasis on developing non-balance sheet forms of income.
These 10 credit unions ($20 million + in assets) lead their peers in the development of non-interest income in relation to their overall income.
|Leaders In Non-Interest Income
|For All U.S. Credit Unions $20M+ in Assets | Data as of 4Q 2010
||New Haven County
||St. Louis Community
||First New England
|Source: Callahan & Associates' Peer-to-Peer Software.