More Deposits Point To Deeper Engagement

Share balances are increasing across the country, but growth is especially notable at one Maryland credit union.

 
 

CU QUICK FACTS

APL FCU
Data as of 12.31.18

HQ: Laurel, MD
ASSETS: $487.4M
MEMBERS: 22.5M
BRANCHES: 3
12-MO SHARE GROWTH: 11.0%
12-MO LOAN GROWTH: 21.6%
ROA: 0.76%

Total share balances increased 5.3% year-over-year and hit $1.2 trillion at year-end 2018, according to data from Callahan & Associates. 

Callahan analysts project regular share balances totaled $436.3 billion as of Dec. 31, an increase of 5.2% from the same time last year. At 35.3%, regular shares comprised the largest piece of the deposit portfolio. Money market accounts came in at No. 2 with 21.5% of the portfolio, and share certificates followed at No. 3 with 19.5% of the share portfolio. Share drafts comprised 15.6% of the total portfolio, and Callahan analysts expect balances for this portion of the portfolio closed the year at slightly less than $193.5 billion. 

Although share certificates were the third-largest segment of the share portfolio, growth in this product outstripped any other. Certificate balances increased 12.4% year-over-year and accounted for $26.7 billion of the total $62.5 billion year-over-year increase in shares.

 

 

Share draft penetration — a traditional measure for gauging the percentage of members that use the credit union as their primary financial institution — increased 41 basis points annually to 57.8%. Callahan analysts project the average share draft balance increased $6 annually to reach $2,853 in the fourth quarter of 2018.  This strengthening performance indicates more members are using their member-owned financial cooperative at their PFI. 

SHARE COMPOSITION

FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.18
© CALLAHAN & ASSOCIATES | CREDITUNIONS.COM

Credit unions reported annual growth of 12.4% in share certificates. Such growth helped this segment increase its share of the deposit portfolio by 1.2 percentage points over year-end 2017.

Credit Union Spotlight: APL Federal Credit Union 

In the past five years, share draft penetration at APL Federal Credit Union  ($487.4M, Laurel, MD) has increased 9.7 percentage points. As of Dec. 31, 2018, a full 75.0% of its membership — three of every four members — held a share draft account with the credit union. For comparison, the industry average at year-end was 57.8%. 

But it’s not just that more members are opening accounts. Members are depositing more money, too. Fourth quarter data filed by the credit union shows the average share draft balance was up $37 since year-end 2017 to $3,479 as of year-end 2018. Total shares at APL increased 11.0% in the past year, more than double the industry’s 5.3% growth rate, and totaled $433.1 million as of Dec. 31.  

SHARE DRAFT PENETRATION

FOR U.S. CREDIT UNIONS | DATA AS OF 12.31.18
© CALLAHAN & ASSOCIATES | CREDITUNIONS.COM

Three of every four members at APL Credit Union held a share draft account in the fourth quarter of 2018.

On average, members at APL FCU held 2.13 share accounts per member in the fourth quarter. This is higher than the industry average of 1.90. A majority of those accounts at APL FCU were regular share accounts. As of Dec. 31, regular shares accounted for 54.1% of total deposit accounts and 44.1% of total deposit balances at the credit union. 

SHARE COMPOSITION

APL FEDERAL CREDIT UNION | DATA AS OF 12.31.18
© CALLAHAN & ASSOCIATES | CREDITUNIONS.COM

Core deposits made up 82.4% of the total deposit portfolio at APL FCU as of Dec. 31. Industrywide, this percentage was closer to 74.2%.

According to its website, APL FCU offers checking accounts that include overdraft protection, no monthly service or maintenance fees, and no minimum balance requirements. And for savings, the Maryland credit union has specialized programs for children, young adults, college students, and vacation/holiday savers. 

Looking For Answers About Your Share Portfolio?

Share balances increased 5.3% year-over-year in the fourth quarter. Learn how various aspects of your share portfolio compares to other credit unions with Peer-to-Peer.

Learn More

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Feb. 25, 2019


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