The Importance Of Non-Interest Income In Today's Environment

Callahan's annual non-interest income survey highlights the crucial role NII plays in a credit union's bottom line.


More than 4,180 credit unions representing 77% of the industry’s assets are reporting fourth quarter data in Callahan & Associates’ FirstLook program. For these credit unions, non-interest income growth is down from 2012, but it remains a vital cushion for declining interest income.

The decreased growth in non-interest income is partly the result of the slowing refinancing activity at credit unions. As mortgage rates have risen, refinancing activity has decreased. This, in turn, has lead to a drop in other operating income, one of the main components of non-interest income. Other operating income grew 49 basis points in 2013; that’s down from 33.3% in 2012. Fee income, the other major component of non-interest income, grew 1.9% in 2013 versus 6.6% in 2012.

Overall, non-interest income for FirstLook credit unions is up 1.2% for 2013. Interest income from loans and investments is down 1.9%.

Data as of December 31, 2013, for FirstLook credit unions
© Callahan & Associates |


Source: Callahan & Associates’ Peer-to-Peer Analytics

Data as of December 31, 2013, for FirstLook credit unions
© Callahan & Associates |


Source: Callahan & Associates’ 2013 Non-interest Income Survey

Non-interest income comprises 28.9% of total income for 2013 at FirstLook credit unions. This is up from 28.1% in 2012 and 18.0% 10 years ago. Non-interest income accounts for 1.38% of average assets, and non-interest income per member measures $154.

Want More Year-End Data Analysis?

Attend Callahan’s quarterly Trendwatch webinar to learn about fourth quarter and 2013 performance trends and identify opportunities for 2014. There is no charge to attend.

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Non-interest income has more than a dozen components, yet the 5300 Call Report dedicates only two fields to this important source of income. Because it can be a confusing area for many credit unions, Callahan & Associates has launched its fifth annual Non-Interest Income Survey to dig deeper than the call report and determine the trends and composition of non-interest income. Armed with this data, credit unions can see how they stack up against their peers and discover new ways of boosting their own non-interest income.

To participate in the Non-Interest Income Survey, please click here. Participants will receive Callahan’s analysis of the survey as well as access to a webinar that reviews the survey’s results, all free of charge.

If you have any questions or concerns about the survey, please contact Mark Reed at




Feb. 12, 2014


  • It would be nice to know how you measure the NII. Your ten or so components?
  • Walt, For the totals listed of this article, non-interest income is defined as the sum of account codes 131 (fee income) and 659 (other operating income) on the 5300 Call Report. The NII survey we are hosting allows credit unions to get a better understanding of what makes up those two account codes.
    Mark Reed