Glatt Consulting, LLC Credit Union Industry HealthScore Shows 3rd Quarter Dip

Dec. 5, 2011 - PRLog -- The Glatt Consulting, LLC Credit Union Industry HealthScore for Q3 2011 decreased from 2.432 to 2.341, a -3.78% change from Q2 2011 but a 0.47% change from Q3 2010. The industry’s highest score, 3.321, came in Q1 2001. The lowest industry HealthScore was Q4 2010’s score of 2.263.

Glatt Consulting, LLC’s Credit Union Industry HealthScore is a composite performance score reflecting the overall financial health of US-based credit unions. The score range is based on a 5-point scale, with 5 being the most healthy and 0 being the least healthy. The score is comprised of eleven specific measurements of credit union performance.

Outside influences continue to impact credit union health. Case in point is the NCUA’s 25 basis point assessment to support the Temporary Corporate Credit Union Stabilization Fund. The assessment impacted credit union earnings substantially, helping drive a -15.0% change in our earnings score component over the prior quarter and a -12.96% decline in efficiency measurements. It should be noted that all but two score components saw a negative percent change from the prior quarter. 

The two components showing positive change over the prior quarter are credit quality and member deposits, which suggests continued improvements in overall member relationships. This is good news as it may allow some credit unions to continue to draw down the balances of their allowance accounts while re-investing in strengthening core account relationships.

Score Ranges

The highest composite HealthScore of 4.818 is held by a credit union in Texas. The lowest score, 0.182, is held by a credit union in Virginia.  

There are 835 credit unions in the 10th percentile, meaning a composite score equal to or less than 1.364. Total assets for this group of credit unions is $8.1B, an increase of $1.7B over Q2. The largest credit union in the list has assets in excess of $400M, the smallest is slightly more than $13K.

There are 846 credit unions in the 90th percentile, meaning a composite score equal to or greater than 3.364. Total assets for this group of credit unions is $421B, an increase of $8.0B over Q2. The largest credit union in the list has assets in excess of $44B, the smallest is slightly more than $775K.

Additional Details and Commentary

Additional details about the latest HealthScore can be found at:

http://glattconsulting.com/2011/12/05/credit-union-indust...

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Glatt Consulting, LLC provides strategy consulting resources for credit union leaders, and is driven by its mission to improve clients’ financial performance and competitive standing. Credit Unions primarily turn to Glatt Consulting, LLC for assistance with strategy consulting, which involves:

Developing Context Strategy;
Developing Execution and Budgeting Strategy;
Performance Tracking and Reporting.

Credit unions also turn to Glatt Consulting, LLC for assistance with unique or specific consulting projects.

The company is headquartered in Wilmington, North Carolina, a base from which it serves credit union clients across the United States and its territories.