Credit Union HealthScore's Steady Rise Shows Industry Strength
Wilmington, N.C. (March 18, 2016) - The Credit Union Industry HealthScore, a score grading the health and strength of credit unions, rose on a year-over-year basis by 2.48% to a score of 5.557, Glatt Consulting announced today. This was the eighth consecutive year-over-year improvement in the industry's score, a clear indication of improved industry stability and overall health.
The Credit Union Industry HealthScore is a composite financial performance score reflecting the financial health of US-based credit unions. Overall credit union health is calculated by scoring/grading credit union performance across 17 different key ratios. Grading is based on a 10-point scale, with 0 reflecting poor health and 10 reflecting exceptional health. The Credit Union Industry HealthScore has been calculated and published since 2009.
The top five credit unions based on the latest score are: Des Moines Police Officers Credit Union (Iowa), Little Rock Fire Department Federal Credit Union (Arkansas), San Diego County Credit Union (California)
Credit unions are still off the industry's high score of 5.773, reached in the second quarter of 2002. The industry has, however, improved substantially in the years since the end of the last recession, a time period that saw the HealthScore drop to as low as 5.012.
Of particular note in the latest score calculation is the continued improvement in membership growth, one of the 17 HealthScore components. Generally membership growth is an industry challenge, and while membership growth does possess the lowest of all components scores, the score increased year-over-year for the sixth straight quarter. This is the longest run of improving membership growth scores since the period ranging from Q2 2008 to Q4 2009, a timeframe influenced by consumer dissatisfaction with big banks and the recession-inspired "flight to safety."
For more information on HealthScore updates and analysis, visit the Glatt Consulting blog feed at http://glattconsulting.com/
About Glatt Consulting
Glatt Consulting provides distinctive strategy consulting that leads to achievement, growth, and financial health for our credit union clients. Our specialties include assistance in defining corporate strategy, designing organizational structure and workflow, and working with credit union leadership teams to improve and better leverage organizational culture. Glatt Consulting also created and publishes the influential Credit Union Industry HealthScore, a composite performance score designed to gauge the financial health of US-based credit unions. The HealthScore is released quarterly and is used by Glatt Consulting, individual credit unions, and media professionals alike to track, report on, and respond to industry-wide trends affecting credit union health.