Taxes were due last Thursday and many of those lucky enough to receive large
refunds will look to put their money in an IRA acount. The percentage of credit
unions able to provide such a service has steadily risen over the last five
years from 55% to 60% of all institutions. Providing members with the option
of opening an IRA account helps the member have a full range of service offerings,
but it also helps the credit union increase average share balances and potentially
lengthen the duration of their funds.
The average member currently holds $6,429 in savings at their credit
union. The average balance of an IRA account, however, is $10,577. Without these
account balances, which provide longer terms and generate larger deposits, average
share balance at credit unions would be almost $600 less, a decrease of 8.7%.
Having high average share balances can help promote internal share growth during
slower periods, increase operational efficiencies through economies of scale and
provide longer-term funds for innovative lending strategies. The table below shows
the top 10 credit unions by IRA balances as a percent of total share balances.
As of December 31, 2003
Based on all CUs over $50 Million in assets |
| Rank |
St |
Credit Union |
IRA as a %of Shares |
Avg ShareBalance |
ShareGrowth |
OpExp/ Avg Assets |
Assets |
| 1 |
MA |
Members Plus |
48.26% |
$16,396 |
3.63% |
2.20% |
$210,352,995 |
| 2 |
NY |
Lufthansa Employees |
31.24% |
$40,163 |
2.30% |
0.65% |
$69,386,757 |
| 3 |
WI |
Emsbla |
29.95% |
$12,130 |
0.78% |
1.98% |
$98,688,256 |
| 4 |
CA |
Parsons |
28.37% |
$13,470 |
13.54% |
2.03% |
$121,813,511 |
| 5 |
NJ |
Merck Employees |
28.28% |
$35,241 |
21.62% |
0.47% |
$1,029,496,254 |
| 6 |
MA |
Nations Heritage |
27.43% |
$6,539 |
1.16% |
3.86% |
$90,185,726 |
| 7 |
AL |
Heritage South |
27.18% |
$4,761 |
9.60% |
2.77% |
$50,112,375 |
| 8 |
MS |
Mississippi Telco |
26.55% |
$8,747 |
7.55% |
1.85% |
$96,881,469 |
| 9 |
TN |
Kimberly Clark |
25.07% |
$5,668 |
5.71% |
3.87% |
$70,119,975 |
| 10 |
MA |
Southern Mass |
24.93% |
$11,940 |
5.00% |
2.60% |
$113,314,085 |
| Averages
for 10 credit unions: |
30.14% |
$16,878
|
13.53%
|
1.40%
|
$195,035,140 |