Financial Performance

Net Interest Margin

By William Hunt | May 17, 2021

The lasting effects of the COVID-19 pandemic — and the national economic response to it — linger on credit union financial statements.

By Aman Johal | April 19, 2021

Credit union earnings rebounded toward the end of the year as industry players find a way to adapt their business models to a changing economic landscape.

By Aman Johal | Jan. 26, 2021

The financial constraints credit unions faced in 2020 provide insights for how to move forward in the coming year.

 

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By William Hunt | Aug. 31, 2020

Many Americans have been beefing up their savings during the COVID-19 lockdowns. Credit unions are putting those additional funds toward less fortunate members.

By Aman Johal | Nov. 13, 2019

The loan-to-share ratio falls, and other can’t-miss insights from Callahan’s quarterly webinar.

By Aman Johal | Aug. 15, 2019

Both sides of the balance sheet and the income statement see significant changes in the second quarter.

By Celeste Karwan | June 11, 2019

Understanding key performance metrics will help gauge early successes and identify any operational adjustments needed to achieve strategic goals.

By Samantha Cristobal | Feb. 19, 2019

As interest rates tick up, the margin between interest income and interest expenses at U.S. credit unions slowly expands. Test your knowledge of the state of the net interest margin in the fourth quarter.

By Maya Neuman | Dec. 17, 2018

ROA for credit unions hit 0.96%. This is the highest it has been since the third quarter of 2003.

By Aman Johal | Aug. 20, 2018

The net interest margin at credit unions nationwide increased as interest income expanded more than $3 billion in the past year.

By Aman Johal | Nov. 27, 2017

Third quarter data reveals strong earnings momentum among the nation’s financial cooperatives.

By Marc Rapport | Sept. 25, 2017

A new strategy at Purdue Federal has delivered a $1.5 million bump in interest income and an anticipated 3-basis-point jump in ROA.

By Jay Johnson | Sept. 18, 2017

Interchange income at credit unions swaps places with punitive fees as a growing driver of industry revenue.

By Ian Melhorn | June 5, 2017

Credit unions generate income in a multitude of ways to stay competitive in a narrowing margin environment.

By Liz Furman | Jan. 30, 2017

The national average for each of these six mighty metrics is less than 10 percentage points, but even a change of a few basis points can make a big difference to a credit union.

By Michelle Parker | Dec. 1, 2016

Besting national averages across various penetration and efficiency rates, financial cooperatives in the Keystone State are efficiently serving members and expanding books of business with their current staffing models.

By Liz Furman | Oct. 18, 2016

The Loan Star State has the highest number of credit unions at 475, and its stellar growth and member metrics evokes the saying “Don’t mess with Texas.”

By Sam Taft | June 13, 2016

Lending and asset growth have been capturing industry headlines, but tight margins from sustained low interest rates and slowly rising operating expenses make some other benchmarks worth watching.

By Rebecca Wessler | Nov. 18, 2015

Third quarter performance data showcases credit union successes in lending and shares.

By IMM: The eSignature Company | Nov. 9, 2015

Making it easy to modify loans increases yield and revenue while building loyal relationships to last beyond the original note.

Credit unions can and should identify HELOC candidates and win that business before interest rates rise.

By Erik Payne | Aug. 19, 2015

Second quarter performance data showcases current and future areas of growth for credit unions, including loans, shares, and variety of income.

By Marc Rapport | Jan. 26, 2015

Deflating news to Patriots partisans: Callahan data points to Seahawks triumph.

With the Fed tapering its buying of assets, it will be interesting to see who comes in to support the market and at what levels. Credit unions will need to remain vigilant when managing the investment portfolio amid a back drop of new regulations and continued lower short term rates.

By Janet Lee | Aug. 27, 2014

Income from loan and investments is the driving force behind the quarter’s 1.2% growth in total revenue.

By Rebecca Wessler | Aug. 20, 2014

The first six months of 2014 have been all about lending lending lending — and credit unions have the performance to prove it.

By Andrew Bolton | March 26, 2014

Lending, originations, revenue, and membership all show how the state’s financial cooperatives have positioned themselves for success this year.

By Andrew Bolton | Jan. 31, 2014

Callahan’s FirstLook data shows increased originations as consumer lending continues to gain ground in the portfolio.

By Andrew Bolton | Jan. 30, 2014

Callahan & Associates predicts the winner of Super Bowl XLVIII by analyzing credit union performance data.

By Janet Lee | Dec. 19, 2013

Credit unions in the Cornhusker state best national average by 25 basis points.

By Janet Lee | Nov. 20, 2013

Credit unions increased the net interest margin by 2 basis points in 3Q13, marking the first time in three years that net interest margin rose from the previous quarter.

By Mark Reed | Nov. 15, 2013

By Drew Grossman | Oct. 29, 2013

Seeman talks about income, tight margins, and how to remain competitive in a low interest rate environment.

By Mark Reed | Sept. 16, 2013

By Alix Patterson | July 31, 2013

By Alix Patterson | April 29, 2013

By Andrew Bolton | March 26, 2013

By Jay Johnson | Feb. 4, 2013

Callahan data shows the top quartile of credit unions by average investment return generate an average return of 1.92%, over six times the 31 basis point average return generated by the bottom quartile.

By Mark Reed | Nov. 19, 2012

Credit unions are increasing alternative sources of income and turning in an outstanding performance in the third quarter in face of historically low interest rates.

With the Fed’s Operation Twist bringing down yields on long-term bonds, consider actively managed duration products for your investment portfolio.

By Lydia Cole | Oct. 1, 2011

Does your credit union Board and executive team understand the terms, definitions, formulas, and metrics they see on the balance sheet and income statement? Share this quiz at your next Board meeting or executive staff retreat.

By Lydia Cole | April 18, 2011

Delinquency, return on assets, net worth to assets: Three metrics to evaluate your credit union and bridge the gap between macro trends and micro performance.

By Lydia Cole | April 11, 2011

Cost of funds, net interest margin, operating expense ratio: Three metrics to evaluate your credit union and bridge the gap between macro trends and micro performance.

By Callahan & Associates | Oct. 1, 2010

Credit unions are facing an incredible opporunity to be an engine for economic growth in their communities by using record liquidity to refinance member loans.

By Lydia Cole | Aug. 30, 2010

Nine graphs illustrate the industry’s resilient performance as of June 30, 2010.

By Ryan Sherwin | April 27, 2010

Key factors to consider when evaluating bonds with early redemption features.

By Chris Tissue | March 29, 2010

In an environment of shrinking loan demand, low investment yields, and excess deposits, credit unions that offer short-term loan products have advantages.

By Mike Philbin | Sept. 7, 2009

What are the key assumptions underlying Net Economic Value (NEV) and Net Interest Income (NII)? How do changes in member behavior affect your set assumptions?

By Dane Coalson | Feb. 2, 2009

Credit unions currently face tightening margins and a competitive environment for deposits. This article examines a variety of pricing strategies that credit unions can employ based on different market conditions.

By Callahan & Associates | Oct. 1, 2008

Many credit unions are not looking at loan protfolios heavily populated with fixed-rate loans originated during a (fairly lengthy) period of historically low-term interest rates.

By Pete Snyder | Sept. 29, 2008

In the current difficult rate environment, credit unions are increasingly looking to non-interest income as a way to increase revenue and provide needed services to members. In contrast to investment services, Loan Protection Products provide a significant opportunity for credit unions to increase gross revenues and, more importantly, increase net income margins.

By Mike Werstuik | April 14, 2008

As earnings have been a major focus in the credit union media, the cause for the decline in net income may not be what you think. Two CUs also share their thoughts on the current environment.

By Nick Connors | Dec. 3, 2007

While other financial institutions struggled in the third quarter, the cooperative mentality helped credit unions maintain current levels in key profitability measures.

By Lydia Cole | Oct. 22, 2007

Callahan & Associates’ mid-year 2007 Non Interest Income Survey reveals changes in the composition of this important revenue stream.

By Nick Connors | Oct. 1, 2007

As the Federal Reserve lowers the Federal Funds Rate, credit unions may have to adjust their pricing strategies in order to maintain, and grow, their core deposit levels.

By Jon Jeffreys | Sept. 3, 2007

There is no question the effects of the subprime meltdown have caused a ripple effect through the world’s financial markets.  The impact of this to credit unions could be positive.

By Mike Werstuik | Aug. 27, 2007

With both loans and shares growing faster than that of banks in the second quarter, credit unions are poised to gain market share in several key categories.

By Jay Johnson | July 16, 2007

The net interest margin reached a new low in the first quarter, and credit unions must focus on the area that is under their control – managing operating expenses.

By Strunk & Associates, L.P. | July 9, 2007

One perspective on how credit unions can adapt to the changing times.

By Dwight Johnston | June 18, 2007

To stay genuinely competitive, we need to continue educating ourselves.

By Jay Johnson | May 14, 2007

Share growth is picking up as credit union dividends rise at an over 40 percent annual rate. Credit unions seem to be finding lower margins an acceptable trade-off for higher growth.

By Jon Jeffreys | April 9, 2007

Affording credit unions the opportunity to reclassify balance sheet information, FASB 159 could provide a marginal boost to the bottom line.

By Landings Credit Union | April 2, 2007

With liquidity returning, now is the time to examine your liquidity strategy and prepare for the next crunch.

By Molly Francis | Dec. 4, 2006

With the current rate environment and net interest margin stabilizing, credit unions can leverage excess capital to bring in shares.

By Joe James | May 1, 2006

DFCU Financial has been in the media spotlight because of its bid to convert to a mutual savings bank. Find out how the credit union performed in the first three months of 2006.

By Andrew Creedon | Oct. 24, 2005

As credit unions face slimmer margins, non-interest income growth continues at a double-digit pace.

By Bret Remey | Jan. 17, 2005

Quarterly ROA rose to six basis points to reach 98 basis points in the third quarter. The rise is partially attributed to many credit unions creating efficiencies within their organization and expanding non-interest income opportunities to grow revenue.