Comparing your credit union’s performance to national averages can be very helpful in a number of situations. But both macro- and micro-level analysis using more specific peer groups is necessary for a complete understanding of your institution's current positioning and its future potential.
The table below compares national averages on a number of key performance metrics to the averages reported by the 102 credit unions headquartered in the state of Kansas.
As you can see, credit unions in Kansas reported values that are above certain national averages but below others. By narrowing your comparison field, you can hone in on and identify the opportunities and challenges specific to your own market. For example, for those credit unions trying to gain a better understanding of their loan portfolio’s delinquency, comparing themselves to the national average might not be the best way to determine their standing in the market.
External factors such as state unemployment levels, median incomes, education level, and home prices do influence a credit union’s performance. And these issues don’t just affect loan delinquency; numerous metrics, from loan origination levels to office occupancy expenses, can vary widely from state to state.
Once a complete understanding of the localized, state-level markets emerges, expanding the focus to include national averages can reveal an individual institution’s performance within the credit union industry as a whole.