Credit Union Industry HealthScore Jumps 9.7%

The Glatt Consulting Credit Union Industry HealthScore for Q1 2012 improved to 2.464, a 9.7% increase from Q4 2011 and a 3.19% increase from Q2 2011. Driving the improved score were substantial increases in asset and membership growth scores.
 
 
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June 5, 2012 - PRLog -- The Glatt Consulting Credit Union Industry HealthScore for Q1 2012 improved to 2.464, a 9.7% increase from Q4 2011 and a 3.19% increase from Q2 2011. Driving the improved industry score were substantial increases in the scores for asset and membership growth, both components of the industry-wide score. The HealthScore has fluctuated at levels below 2.40 since mid-2008 on challenges stemming from slow U.S. economic growth and consumer lending demand, and the lingering cost of corporate credit union failures. The industry’s highest score, 3.195, came in Q3 2001. The lowest score of 2.148 was recorded in Q1 2009.

The asset growth component score of 3.168 reflects an 81% improvement over the Q4 2011 score and a 12.4% improvement over the Q3 2011 score. A full 89% of credit unions experienced growth in this area, growth that pushed credit union assets above $1 trillion.  

While the membership growth component score of 1.155 was an improvement of 41% over the Q4 2011 score and a 23% improvement over the Q3 2011 score, it is important to note that 45% of all credit unions experienced declining membership growth. This data highlights that fact that a minority of credit unions are responsible for broader industry health improvements in this area, and that strong sustainable membership growth continues to be a challenge for the broader credit union community.

Glatt Consulting’s Credit Union Industry HealthScore is a composite performance score reflecting the overall financial health of U.S. 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.

Score Distribution

The highest composite HealthScore of 4.727 is held by a credit union in Tennessee. The lowest score, 0.273, is held by a credit union in Pennsylvania.

There are 855 credit unions in the 10th percentile, meaning a composite score equal to or less than 1.545. Total assets for this group of credit unions is $8.0B, or .78% of all credit union assets, which is a decrease of $900M over Q4. The largest credit union on the list has assets in excess of $374M, the smallest is slightly less than $3K.

There are 802 credit unions in the 90th percentile, meaning a composite score equal to or greater than 3.455. Total assets for this group of credit unions is $452B, or 44% of all credit union assets, which is a decrease of $14B over Q4. The largest credit union on the list has assets in excess of $48B, the smallest is slightly more than $1.9M.

Additional score data available at http://glattconsulting.com/2012/06/05/glatt-consulting-cr...

About the Glatt Consulting Industry HealthScore

Glatt Consulting, LLC’s HealthScore system is based on best-practice performance benchmarks for eleven different key credit union metrics. Individual credit union performance is analyzed against each of the benchmark performance categories, resulting in category performance scores. An aggregate score, based on overall category performance, is then determined. Scores are logged for each and every federally insured credit union.

An aggregate score reflecting overall industry health is determined, as are aggregate scores for each performance category. This score is published as Glatt Consulting’s Credit Union Industry HealthScore once per quarter.

The score is published as a means to spark industry discussion on strategic direction individually and collectively. Because strategy development is a dynamic challenge/response process, the score should not be relied upon as a determinant/predictor of future industry performance. It can, however, show key areas of strategic concern to be mitigated, or strengths to be leveraged.
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Source:Glatt Consulting
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Tags:Credit Union, Glatt Consulting, Credit Union Health
Industry:Banking
Location:Wilmington - North Carolina - United States
Subject:Reports
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