Callahan Provides Quarterly Financial Institution Scorecard

As of Sept. 30, credit unions account for just 6.2 % of the total assets for all financial institutions, down from nearly 6.5% at the same time last year. See how credit unions compare to banks and thrifts.

 
 

Third quarter data shows that credit unions, banks, and thrifts have all performed well in 2004, although growth of the cooperative movement is showing signs of slowing. As of Sept. 30, credit unions account for just 6.2 % of the total assets for all financial institutions, down from nearly 6.5% at the same time last year. This change can also be seen in the 12-month asset growth. In September 2003, credit unions topped both banks and thrifts with 11.1% asset growth; this year that trend has reversed and credit unions now trail banks and thrifts with asset growth of only 5.86%.

All three sectors experienced a slight fall in their return on assets from the third quarter of 2003, with credit unions and thrifts both falling about 10 basis points. Banks still led the way at 1.36%, only a 3 basis point decrease from last year.

Consolidation continues to play a major role in the financial services industry. There are now 9,311 credit unions in the U.S., down from 9,664 in September 2003. Over the past year the total number of banks has declined by 152, and thrifts have dropped by 60.

The chart below details some key data for the three financial institution types. What similarities and differences do you find the most important? We’d love to hear your comments below.

Data as of Sept. 30, 2004
# of
Institutions
$ Assets
(billions)
12-month Asset
Growth
Return on
Assets (YTD)
Net Interest
Margin
Loans to
Shares/Deposits
Credit Unions
9,311
655
5.86%
0.95%
3.33%
73.4%
Banks
7,660
8,244
10.3​3%
1.36%
3.71%
105.0%
Thrifts
1,365
1,633
11.01%
1.18%
3.17​%
119.3%
          ​   
Sources: FDIC and Callahan & Associates, Inc.
 

 

 

Dec. 6, 2004


Comments

 
 
 
  • I find the consolidation of the industry very interesting, specifically the number of institutions, and asset concentration. What would be even more fascinating would be a look at Demand Deposit Accounts or Internet Banking Users at the 3 types of institutions.
    Anonymous
     
     
     
  • Have the banks traditionally been over 100% loan/deposit? I always thought credit unions had a higher percentage!
    Anonymous