Deposits By The Numbers (4Q17)

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.

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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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