Credit union consolidation and strong growth has led to a rising
number of larger credit unions. Due to these increases, Callahan
& Associates has reevaluated their standard peer groups to better
segment credit unions and enable more relevant performance comparisons.
Previously the top peer group was all credit unions over $250 million
in assets. However, since that peer group was designated, the number
of credit unions over $1 billion in assets has grown significantly,
and now 82 credit unions occupy that space.
Credit unions above $1 billion can better utilize economies of
scale to run highly efficient and productive operations. This has
enabled those credit unions to separate themselves and set a higher
standard for performance. As such, credit unions between $250 million
and $1 billion in assets should not necessarily consider these larger
credit unions their true peers, and the two groups were separated.
The other peer groups affected by the re-segmentation were the
two smallest peer groups, those under $1 million in assets and those
between $1 million and $2 million. Because these smaller credit
unions experienced the bulk of the industry's consolidation, they
The table below displays the new peer group segments and some key
performance measures. As can be seen, the performance differs greatly
depending on the asset size of the group. This new segmentation
will be prevalent in all 2004 publications, beginning with Callahan's
Credit Union Directory which is currently in production.