CUs Top $694 Billion in Assets, Reach 86.5 Million Members at Year-End 2005

The year-end results are in for all 8,880 U.S. credit unions. What was the final tally in 2005 and how will they shape 2006 performance?

 
 

America’s 8,880 credit unions wrapped up 2005 in much the way they began the year. Slowing share growth, double-digit loan growth, and tighter margins were the primary themes in 2005. Attracting new members remains a key issue for the industry, as membership increased at the same 1.5 percent rate recorded in 2004.

Although slow growth has captured the headlines, momentum is evident in some of the numbers:

  • All loan categories posted growth in 2005
  • The loan-to-share ratio is near its 10-year high
  • Revenue is up 11.2 percent due to both an expanding loan portfolio and rising rates
  • Operating expenses were managed, rising 6.5 percent versus 2004 levels
  • Dividend payments to members rose to $9.8 billion, up 12.8 percent from 2004

Building on this momentum is essential to success in 2006, though the environment will be challenging. Mortgage lending and new auto sales, the primary drivers of loan growth over the past year, are expected to be down from 2005 levels. Economic data may keep the Fed in a tightening cycle longer than expected. Competition for scarce lending and savings dollars will intensify.

Success in this environment will require leveraging the collective strengths of the credit union community to deliver outstanding member value. If the value is apparent to consumers, they will take advantage of the opportunities in credit union membership.

Credit Unions Results as of December 31, 2005

Industry totals in Thousands

 

December 2005

12-month Growth

Assets

$694,149,283

4.9%

Loans

$468,814,941

10.7%

Shares

$590,778,535

3.8%

Capital

$80,363,473

8.0%

Members

86,469

1.5%

 

 

 

 

December 2004

December 2005

Loans/Shares

74.4%

79.4%

Delinquency

0.72%

0.73%

Capital/Assets

11.0%

11.6%

Net Interest Margin

3.32%

3.25%

Return on Assets

0.92%

0.86%

Average Share Balance

$6,679

$6,832

Average Loan Balance

$10,074

$10,837

For complete information on year-end national trends and performance benchmarking, turn to Callahan's 2006 Credit Union Financial Yearbook.

 

 

 

Feb. 20, 2006


Comments

 
 
 
  • Thanks for sharing this info with a credit union employee/member.
    Anonymous