By Donya Parrish, MCU VP- Risk Management
Last week, we shared a statewide report with your credit union CEO that detailed financial performance (based on NCUA Call Report data) as of Dec. 31, 2022. It shows some interesting trends that you might find interesting when comparing it to your own credit union.
Montana’s 46 federally insured credit unions reported the following:
- Net worth was at 10.83%; higher than the national total of 9.22%
- Delinquent loans (.32%) and net charge-offs (.07%) were both below national totals of .61% and .34%
- Share growth was down in Montana (-.72%) but came in at 3.78% nationally
- Member growth (.03%) was stagnant compared to a national total of 4.85%
- Loan growth was strong (14.70%) but lagged a national total of 20.42%
- Loan to share ratio improved to 71.23% and still fell behind the national 81.36%
- Return on Average Assets (ROAA) was .49 in Montana an .66 nationally and fell in both cases from Dec. 2021
- Fee income came in at .88 in Montana (compared to 1.11 nationally) and operating expenses were similar (2.70 and 2.74) between the state and nation
- Total expenses were very similar (2.70 Montana and 2.74 National) and both remained similar to the Dec. 2021 level
What does all that mean? It depends on where your individual credit union falls compared to the state, regional (also given in the report), and national levels, as well as your credit union’s current goals and any other impacts you have seen in your service area. It might be a good topic of conversation for a future board meeting!