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Credit Union 1Q Data: Credit Unions still on the hunt for deposits, despite 5.9% growth

WASHINGTON, DC (May 20, 2019) — Credit unions are aggressively building a deposits portfolio now fueling a lending machine that’s seeing some of the lowest delinquency rates in more than a decade.

Those trends were highlighted in this week’s Trendwatch webinar, a quarterly offering from Callahan & Associates that highlights industry performance, shares credit union success stories, and identifies areas of opportunity.

Callahan analysts identified three trends from 1Q 2019 credit union performance data:

An 18.2% increase in share certificates drove overall share growth to 5.9%
Asset quality improved as delinquency dropped to 59 basis points, the lowest rate since before the financial crisis
The net interest margin rose 8 basis points to 3.11, driving ROA up to 0.94% despite a jump in the cost of funds

“Credit unions are on the hunt for deposits to fund solid, well-balanced growth across all sectors of the loan portfolio,” said Alix Patterson, Callahan & Associates’ Chief Experience Officer. “Over 30% of this quarter’s near record high share growth came in the form of certificates, pushing the cost of funds up 25 basis points over this time last year.”

Consumers continue to support the credit union difference with their wallets. The industry brought in over 4.5 million new accounts in the past 12-months while also driving average relationship balances north of $19,150. Today, over 58% of members have a checking account — another new high for the industry.

This quarter’s webinar featured a presentation from Erin Hennessy of United Federal Credit Union about the Michigan-based cooperative’s checking account strategies that are bringing in millions of dollars in new deposits and hundreds of new members a month.

All of the data from the Trendwatch webinar was pulled using Callahan’s data analytics tool, Peer-to-Peer. To learn how to gain access, click here.

To learn more about first quarter data trends, contact us at support@callahan.com or visit CreditUnions.com for commentary and industry insights.

About Callahan & Associates

For more than 35 years, Callahan & Associates has helped credit union leaders identify strategic growth opportunities that increase member value. We create meaningful dialogue, connect people, provide counsel, and help organizations thrive through our competitive analytics, best-practice media, leadership consulting, and collaborative ventures. Our clients grow assets, members, shares, and loans faster than industry averages. Learn more at www.callahan.com.