News

Credit Unions – What We’ve Seen + What We Expect to See

By Brian Sullivan

What We Have Seen in 2017

  • Credit unions have seen their profitability continue to stabilize in 2017 when compared to 2012. Through the first six months of 2017, credit unions have maintained a return on assets of 0.76% which is almost what it was a year ago.
  • For the first half of 2017 the interest margins continue to tighten as yields on loans have continued to trend downward to 4.50% while yields on member deposits have increased slightly to 0.53%. 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 2017 the amount of delinquent loans to loans has remained steady at .75%.

 

What We Expect to See in 2018

  • 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 2017, however, the increase may not be as fruitful as 2016 if interest rates do start to rise.
  • 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.