Average Member Relationship Continues To Climb

Credit unions attracted new members and deepened relationships in the second quarter of the year.

 
 

Membership at U.S. credit unions increased 4.4% from June 30, 2017, to June 30, 2018. In total, the movement added 4.9 million members.

What Is AMR?

(Average $ Savings) + (Average $ Loans - Business Loans) = Average Member Relationship

But credit unions didn’t just add members, they also deepened member relationships. The average member relationship for all credit unions in the United States was higher in the second quarter of 2018 than it has ever been. Based on early performance data derived from 5300 filings, Callahan & Associates predicts the average member relationship reached $18,681 as of June 30, 2018. That’s a 2.9% year-over-year increase.

First mortgage lending and auto lending together helped drive that increase. They collectively accounted for 76.1% of the entire loan portfolio and were the only loan products whose share of the portfolio increased in the past year.

Real estate and auto lending dominate the industry’s loan portfolio.

On the other side of the coin, regular shares accounted for the largest component, 36.6%, of the share portfolio. Regular shares and share certificates were the only categories whose piece of the portfolio increased in the past year.

Core deposits comprise 73.9% of the total share portfolio.

Overall, loan growth outpaced share growth by 4.3 percentage points, according to early data analysis from Callahan & Associates. However, members held more accounts and balances in deposit products.

Loan accounts per member increased slightly to 0.58. On the deposit side, members held 1.9 share accounts on average.

 

 

The average loan balance, minus business loans, was $8,186 per member as of June 30, 2018. The average share balance, meanwhile, was $10,495 per member. Note, this average share balance does not include non-member deposits.

A key driver of success for credit unions since the Great Recession lies in the movement’s ability to add members and deepen relationships. Membership at credit unions has increased 29.5% over the past 10 years. That’s notable growth. Even more impressive — the average member relationship has increased 33.9% in the same time frame. AMR has grown from $13,997 in the second quarter of 2008 to $18,681 as of June 30, 2018.

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Aug. 22, 2018


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