4 Facts About Shares In Second Quarter 2015

Share growth at credit unions has reached a significant milestone.

 
 

As shares continue to grow and set record highs, credit unions are finding themselves better equipped to handle a blurry future of rising interest rates.  

1. Share growth is on the rise.

Credit unions have increased share balances YOY for the past 14 years. In the past 12 months alone, credit unions have added $48.5 billion to share balances; that’s a 5.1% increase that is comparable to the average annual growth rate for the previous five years.

SHARE GROWTH
For all U.S. credit unions | Data as of 06.30.15
© Callahan & Associates | www.creditunions.com

Share_Growth

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

2. Members are directing more savings to credit unions.

Credit unions are adding shares at an accelerating rate. Since 2009, shares have increased $100 billion every two years. That’s a far cry from the 1990s when credit unions needed approximately eight years to post that same growth. At midyear 2015, credit union shares topped $1 trillion — an impressive historical high-water mark.

HISTORICAL SHARE BALANCES
For all U.S. credit unions | Data as of 06.30
© Callahan & Associates | www.creditunions.com

Historical_Share_Balances

Source: Peer-to-Peer Analytics by Callahan & Associates, CUNA Mutual

3. Strong deposit growth fueled growth in total shares.

Core deposits have been the predominant drivers of share growth at credit unions. Between second quarter 2014 and second quarter 2015, regular shares and share drafts increased 9.1% and 8.4% respectively.  

YOY GROWTH BY SHARE PRODUCT TYPE
For all U.S. credit unions | Data as of 06.30.15
© Callahan & Associates | www.creditunions.com

YOY_Growth_by_Share_Product

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

4. The loan-to-share ratio is the strongest it has been in half a decade.

Share growth has boosted liquidity within the credit union industry. The 75.4% loan-to-share ratio posted at midyear 2015 is the highest since year-end 2009. This cushion of liquidity will give credit unions the agility to pivot into a new environment when rates eventually rise.

LOAN-TO-SHARE RATIO
For all U.S. credit unions | Data as of 06.30.15
© Callahan & Associates | www.creditunions.com

Loan-to-share_ratio

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

 

 
 

Aug. 28, 2015


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