How has the industry’s net interest margin changed and which state reported the highest level?

 
Mark Reed

 

According to Callahan & Associates’ FirstLook data, the credit union industry reported a net interest margin of 2.79% as of September 2013, down 17 basis points from September 2012 as credit unions’ interest income earnings are still affected by the low-rate interest environment. The average net interest margin has been below the average operating expense ratio since 2011, which implies that the spread between interest income and interest expense alone hasn’t been enough to cover credit union’s operating expenses. However, the industry has begun to see its net interest margin stabilizing since early 2013. Over a past couple of quarters, the net interest margin improved two basis points from 2.77% reported in the first and second quarters.

OPERATING EXPENSE RATIO VS. NET INTEREST MARGIN
Data for All Credit Unions in the U.S.
© Callahan & Associates | www.creditunions.com

11-15-2013

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

Among all states, Alaska held the title for the highest net interest margin as of September 2013 with 3.53%. North Dakota came in second with a net interest margin of 3.28%, down 11 basis points from a year ago. 

LEADERS IN NET INTEREST MARGIN
Data as of September 30, 2013 for All Credit UnionS in the U.S.
© Callahan & Associates | www.creditunions.com

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

 

 

 
 

Nov. 15, 2013


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