Credit Unions Hit One Trillion in Assets

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John Lopez, 415-517-9760
JLopez@hardenpartners.com

Large Credit Unions Credited for Achieving Pinnacle Growth in First Quarter of 2012

LAKE BLUFF, Ill., Apr 12, 2012 – As of March 31, 2012, the credit union movement achieved one trillion in total assets. Analysis, by independent research firm Moebs $ervices of the money stock, interim deposit totals at numerous credit unions, and near money, i.e., transaction accounts and insured savings, concludes that credit unions have made a remarkable achievement in toping one trillion in assets in March.

The Moebs analysis shows credit unions of all sizes are maintaining the rate of asset growth seen in 2011 and 2010, but in different ways. “Credit Unions greater than $5 billion increased their assets at a pace of 14.0 percent in 2011,” said Moebs. “Those between $500 million and $5 billion saw an increase of 6.1 percent. Credit unions with less than $500 million in assets increased by 0.5 percent. It was the large credit unions that truly pushed the movement past the trillion dollar pinnacle,” explained Michael Moebs.

———–       —————–
 2012 1st Qt   $ 1,003.4
———–       —————–
 2011            $ 974.2
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 2010            $ 926.6
———–        —————–
 2009            $ 896.8
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 2008            $ 825.8
———–        —————–
 2007            $ 770.1
———–        —————–
 2006            $ 726.2
———–        —————–
 2005            $ 692.3
———–        —————–

Is Growth to One Trillion In Assets Good for All?

Capital is king when it comes to growth, Moebs pointed out. “The credit unions over $5 billion, with a couple of exceptions, are remarkably efficient financial institutions,” says Moebs. “Their revenue, both rate and fee, is down, and their expenses are down even more; their expenses are 39 percent less than credit unions less than $500 million in assets and 29 percent less than community banks. These lower expenses allow credit unions over $5 Billion to build capital and grow. “My chief worry for all depositories is the perception that growth is the solution to all problems. Profitable growth is the most difficult thing for credit unions or banks of all sizes to manage, and is only achievable through excellent control of expenses,” declared Moebs.

Why One Trillion in Assets is Important

A Trillion in assets has many implications noted Moebs. “My Texas friends often say to me, ’Go Big or Go Home,’” remarked Moebs. “Big works well in Texas and it also works well with Congress and regulators. Big works best when at the economy of scale or most efficient level. Washington like the marketplace gives positive recognition to efficiency. The credit union movement at a trillion in assets must be cautious it doesn’t become Too Big To Fail like the very large mega banks,” observed Moebs.

About Moebs Services
Since 1983, Moebs Services has independently been collecting statistically significant, primary empirical data about financial institutions’ services, pricing, operating expenses and financial condition and analyzing the data in a counter intuitive manner, which provides solutions that make sense. For more info please visit www.moebs.com

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