Which credit unions have posted the greatest increases in their net interest margins?

 
 

Although interest rates remain at historically low levels, with loan growth picking back up as the recession fades, net interest margins are beginning to increase at some credit unions. Division 819 Transit Employees ($22.9M, Irvington, NJ) increased their net interest margin by 192 basis points from March 2012 to 2.05%, the largest increase among credit unions over $20 million in assets. The increase was due to interest income from loans and investments increasing coupled with a decrease in interest expenses.

Eddy ($62.6M, Carlsbad, NM) and CAHP ($114.8M, Sacramento, CA) posted increases in their net interest margins of 1.58% and 1.50%, respectively.

The net interest margin for all credit unions stood at 2.77% in the first quarter. This is down 21 basis points from the net interest margin of 2.98% reported in March 2012. With interest rates expected to rise in the next few years, margins for the industry as a whole may finally begin to creep back up.

LEADERS IN CHANGES IN NET INTEREST MARGIN
Data as of March 30, 2013 for all U.S. Credit Unions Over $20 Million
© Callahan & Associates | www.creditunions.com

  Credit Union State Change in NIM 2013 Net Interest Margin 2012 Net Interest Margin Total Assets
1 Division 819 Transit Employees NJ 1.92% 2.05% 0.13% $22,857,945
2 Eddy NM 1.58% 7.96% 6.38% $62,562,514
3 CAHP CA 1.50% 4.62% 3.12% $114,809,926
4 Vermont State Employees VT 1.25% 2.40% 1.15% $606,334,240
5 Illinois Community IL 1.14% 7.14% 6.00% $100,986,683
6 Toledo Metro OH 1.11% 4.45% 3.34% $35,176,764
7 Northern States Power - St. Paul MN 1.02% 3.19% 2.17% $49,730,238
8 Heights Auto Workers IL 0.96% 3.47% 2.51% $35,182,412
9 Valley Oak CA 0.96% 4.25% 3.30% $46,901,869
10 Florence Dupont Employees SC 0.96% 3.61% 2.66% $24,914,438


Generated by Callahan & Associates' Peer-to-Peer Analytics

 
 

July 31, 2013


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