Implications of the Loan-to-Share Ratio for the CU Industry

By Preston Packer |

Nov

15

The loan-to-share ratio can be deceiving. It’s calculated by dividing the total amount of outstanding loans by the total amount of share deposits. While this ratio serves as a good indication of a credit unions liquidity, it also shows the level of risk a credit union is willing to take on. Generally speaking, credit unions with a high loan to share ratio are taking on more risk to increase their profits. At the end of Q2 this year, the national loan-to-share ratio reached an all-time high since 2008. On December 31, 2008, it was 83.2% but continued to decline from that point on until it bottomed out in 2013. Since then, the loan-to-share ration has been climbing, and 10 years later it’s finally back up to 82.9% as of June 30, 2018. While things are looking up for the nation as a whole, the loan-to-share ratios actually differ by state, with a few standouts:

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8 Credit Union Growth Stats You May Not Know

By Preston Packer |

May

17

There has been a great deal of discussion lately on the struggles of smaller to medium-sized credit unions. They face many challenges to remain on par with their peers, while not breaking the bank. However, the other side of the coin is the strength of the industry as a whole. Though 70% of the credit union population is composed of smaller credit unions, here are some numbers that illustrate basic performance facts of today's credit union industry:

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The Top 5 Crutches that Create Performance Disparities Between Large and Small Credit Unions

By Preston Packer |

May

08

Many Small credit unions are fighting an uphill battle to compete in the financial marketplace and to gain a better foothold. With recent numbers illustrating their decline in membership, assets and loan growth, it seems small credit unions have a blurry future. However, with an estimated 70% (4000/5684) of total operational credit unions classified as small (having under $100M in assets,) they represent a huge portion of the industry, and their struggles shouldn’t be easily dismissed.

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Are Large Credit Unions Monopolizing the Industry?

By Preston Packer |

May

01



Small credit unions have held their own in the marketplace for years, struggling at times to compete, but with extraordinary resourcefulness, have stayed viable.The latest report from the NCUA, however, provides some alarming data: Large credit unions are getting larger while smaller credit unions are, in fact, getting smaller. It's worth noting that while this is actually a long time industry trend, the strengthening economy has brought with it mounting challenges for smaller credit unions to stay competitive in the upcoming year.

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Spring: Time For Credit Union Growth and Member Cultivation

By Preston Packer |

Mar

27


It's finally Spring, the season for growth, renewal, fresh beginnings and new opportunities. This is also a great time to look for fresh opportunities to grow your credit union's bottom line and to cultivate existing members. There are various strategies to best accomplish this, some more tried and true than others. At the close of 2017, results from strategic planning sessions yielded several trends in the credit union industry, both opportunities and industry challenges. One of the biggest and most noteworthy differences for the upcoming year was a more focused approach on member growth and lending strategies. The incorporation of more targeted marketing with an expanded use of social media, and the rise in the credit union market's share of auto loan financing were also predicted to be important factors that would play a role in credit union growth.
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