Which credit union had the highest average investment yield?

 
 

SD Medical ($71.5M, San Diego, CA) Credit Union’s investment yield of 5.19% is the highest among the 2,266 credit unions over $50 million in assets at September 30, 2012. The average yield for all 7,031 credit unions was 1.37%.

SD Medical has 91.3% of their investments in investment classes with maturities greater than one year, far exceeding the national average of 55.4%. Investing in assets with longer time to maturity may be helping SD Medical achieve such a high rate of return on their investments. Two other credit unions over $50 million reported yields greater than 5.00%, including River Region ($82.4M, Jefferson City, MO) and IC ($469.5M, Fitchburg, MA).

LEADERS IN AVERAGE INVESTMENT YIELD
Data As Of September 30, 2012 For All Credit Unions Over $50 Million
© Callahan & Associates | www.creditunions.com

  Credit Union State Average Investment Yield Total Investments Total Assets
1 SD Medical CA 5.19% $28,482,749 $71,533,292
2 River Region MO 5.14% $6,343,544 $82,404,139
3 IC MA 5.02% $60,725,836 $469,548,645
4 FedFinancial MD 4.47% $44,896,330 $73,598,421
5 InTouch TX 3.96% $379,544,734 $830,775,430
6 Infinity ME 3.78% $94,075,799 $275,557,266
7 McGraw-Hill NJ 3.76% $108,827,172 $298,615,328
8 Wildfire MI 3.66% $372,190,981 $676,177,140
9 Sterling-Van Dyke MI 3.57% $75,381,192 $106,110,624
10 Hawaii Pacific HI 3.56% $19,963,646 $52,599,948
11 Central Star KS 3.46% $21,196,044 $74,208,327
12 East OH United Methodist OH 3.42% $59,998,268 $82,416,577
13 Sun OH 3.33% $168,460,295 $442,449,527
14 Affinity Group MI 3.18% $62,880,861 $156,200,119
15 Utica Gas & Electric Emp NY 3.18% $27,606,687 $53,941,387
16 Investex TX 3.18% $36,268,791 $116,259,524
17 Dupaco Community IA 3.15% $462,236,690 $1,040,738,749
18 Credit Union West AZ 3.15% $89,462,268 $474,844,214
19 United Teletech Financial NJ 3.14% $98,503,745 $306,612,959
20 Pioneer ID 3.14% $128,642,817 $304,411,469

 

Generated by Callahan & Associates' Peer-to-Peer Software.

 
 

Feb. 4, 2013


Comments

 
 
 
  • This analysis is a poor indicator of investment performance. It ignores how the investments fit into the rest of the credit union's balance sheet (e.g., what is the duration of the CU's liabilities?). The analysis ignores embedded interest rate risk, prepayment risk, extension risk and liquidity risk. The author even confuses yield with rate of return - some basic investment knowledge would be helpful here. Be careful - many big investment mistakes are made in low interest rate environments when everyone is stretching for yield. Know what you are buying and how the investment will perform in different interest rate scenarios. Identify, measure, control and monitor your risks so that there are no surprises down the road.
    Wayne Rosenwinkel