Deposits By The Numbers (4Q17)

Share balances hit a record high in 2017. What else happened in the credit union deposit portfolio?

 
 

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Share balances rose $66.6 billion in 2017 and hit a record high of $1.2 trillion as of Dec. 31.

Core deposits — share drafts, regular shares, and money market shares — totaled $860.6 billion and comprised 73.3% of the share portfolio at year-end. The NCUA’s Western Region posted the greatest increase in core deposit growth. Credit unions there posted year-over-year growth of 8.8% in core deposits; that’s 2.2 percentage points above the industry’s 6.6% average.

The industry posted a strong 6.0% share growth rate, despite the growth slowing 1.6 percentage points year-over-year. Regular shares and deposits grew 6.8% in in the fourth quarter of 2017 up to $414.9 billion. In money market accounts, credit unions posted 4.0% growth totaling $262.4 billion and made up 22.4% of the deposit portfolio. Although IRA/Keogh balances contracted 60 basis points, they ended 2017 at $78.4 billion.  

 

 

 

Share draft penetration increased 1.04 percentage points year-over-year and was at 57.2%. As of year-end 2017, there were 64.4 million credit union share draft accounts. That’s 3.7 million more accounts than at year-end 2016.

Share draft accounts are a general indicator that a member uses the credit union as their primary financial institution. As of fourth quarter 2017, credit unions with more than $1 billion in assets had a 61.5% average share draft penetration — the highest of any asset group at year-end.

How do your 4Q17 numbers compare to your peers? Find out today.

This could be because credit unions with larger asset sizes tend to offer more robust technology offerings and improved convenience. For example, among credit unions with more than $500 million in assets, 40.2% allow members to open a new share account online. That drops to 31.8% for credit unions with less than $500 million in assets. Furthermore, 40.9% of credit unions greater than $500 million in assets offer remote deposit capture, whereas 17.9% of credit unions less than $500 million in assets offer it.

At 61.5%, credit unions with more than $1 billion in assets had the largest share draft penetration.

Core deposits in NCUA’s Western Region comprised 77.6% of the share portfolio.

Share balances rose $66.6 billion and hit $1.2 trillion at year-end 2017.

Share balances increased year-over-year for nearly every product in the portfolio.

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April 2, 2018


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