Corporates Boost Capital By 22% In First Half Of 2011

Continuing corporate credit unions are posting healthy financials amid a changing landscape.


The corporate credit union system is undergoing a transition that will change its future landscape. The number of corporates, the services they will offer, and the system's capacity is in flux. Several corporates have already merged, and by the end of 2011 and into 2012, more corporates will complete a merger or gain merger approval. Such activity makes natural person credit union awareness of the financial state of corporate credit unions increasingly important. Highlights from the July corporate credit union financials include:

  • The entire corporate system had assets of $60.9 billion as of July. Continuing corporates held $26.4 billion in assets, while bridge corporates held the remaining $34.5 billion.
  • Continuing corporates reported a year-to-date ROA of 22 basis points and a monthly ROA of 21 basis points in July:

Click on graph for larger image  |  Source: Callahan & Associates' Peer-to-Peer data

  • Total capital at continuing corporates was $1.36 billion as of July 31:

Click on graph for larger image  |  Source: Callahan & Associates' Peer-to-Peer data

  • Multiple corporates conducted capital drives during the summer, and capital growth numbers reflect these efforts. One-month capital growth for continuing corporates was 3.8%, while their 12-month capital growth was 22.3%.
  • Out of the nearly $26 billion in investments and cash held by continuing corporates, $9.3 billion is invested with banks.
  • At the end of July, continuing corporates had a year-to-date yield/DANA ratio of 78 basis points.

For more information on corporate credit union trends and data, contact Andrew Bolton at Callahan & Associates at 202-223-3290 x180 or