The Changing Role of the Top 100 Credit Unions

The 100 largest credit unions continue to grow in assets, shares, loans and capital. Find out what sets this dynamic group apart.

 
 

The largest 100 credit unions at year-end had assets of $154 billion or equal to 30.3% of the $508 billion total credit union assets. Fifty-six had total assets over the billion-dollar mark. The average Top 100 credit union's size was $1.5 billion. Their collective strength is growing and at an accelerating pace. Ten years ago the Top 100 were just over 24% of assets. Last year the faster growth rate of the Top 100 propelled this share up by 1% to the current 30.3% level.

When the long-term trends of the Top 100 are compared with the remaining 10,101 credit unions over the past six years, every indication is that this concentration of assets in the Top 100 will increase. Larger credit unions have higher average member share and loan balances, lower expenses and payout a higher percent of their income to members in dividends. Even though the loan-to-share ratios of the Top 100 are almost identical to the rest of credit unions, the larger group has a lower charge off rate for problem loans. This is due, in part, to the higher percentage of real estate loans in their portfolio.

 

 

 

May 27, 2002


Comments

 
 
 
  • Great info - Thanks
    Anonymous
     
     
     
  • Good to mention cooperative effort as an aid to growth and success.
    Anonymous
     
     
     
  • Do larger CUs attract members by building branches or the use of technology?
    Anonymous
     
     
     
  • It's very interesting to hear this type of information!!
    Anonymous
     
     
     
  • The info is very helpful to put things in perspective. Thank you.
    Anonymous
     
     
     
  • It's intereting to note that the larger, more profitable CU's have a larger percentage of RE Loans. My experience with the NCUA and CU examiners is that they do not like mortgages, particularly FR mortgages. My guess is that the larger CU's also "manage" their interest rate risk more proactively than the smaller CU's. CU's need to understand that growth is necessary to survive in an industry where costs keep rising and margins are shrinking (long term). I am not surprised to see the poor performance of most CU's in the current environment. It is clear to me that CU's need more education on the basics of managing net interest income. Too many small er CU's focus on "regulatory" concerns and as a result, avoid doing some of the smarter things that make the CU more profitable and ultimately viable and relevant.
    Anonymous
     
     
     
  • Great insight-- well written--
    Anonymous
     
     
     
  • Very good information!
    Anonymous
     
     
     
  • Great work... Thanks
    Anonymous
     
     
     
  • Very timely and current
    Anonymous
     
     
     
  • Pretty good job! Thanks.
    Anonymous
     
     
     
  • Can we get a list of the top 100?
    Anonymous
     
     
     
  • A MARKETING PLOY TO SELL CALLAHAN REPORT
    Anonymous