News

Credit Unions – What We’ve Seen and What We Expect To See

By Brian Sullivan

What we have seen in 2015:

  • Credit unions have seen their profitability continue to stabilize in 2015 when compared to 2014. Through the first six months of 2015, credit unions maintained a return on assets of 0.80% which is exactly what it was a year ago.
  • For the first half of 2015 the interest margins continue to tighten as yields on loans continued to trend downward to 4.66% while yields on member deposits only decreased slightly to 0.52%. Credit unions are having to look for other sources of income.
  • The number of credit unions in the nation has been declining but are still seeing steady growth in number of members, loans and total assets.
  • In the first half of 2015 the amount of delinquent loans to loans fell by 0.11%.

 

What we expect to see in 2016:

  • Interest yields are finally expected to increase due to the anticipated Federal Reserve hike in short term interest rates.
  • Loans are expected to increase as consumer spending rises in 2016.
  • More demand and affordability of mobile products.
  • Technology advances will continue to change the member outlook on financial services.
  • Addition of more value-added services to better serve the needs of members in the changing technology driven environment.