We can see the potential shift on the distant horizon, but for now, with the majority of our clients, LOANS are still king!!!
We can see the potential shift on the distant horizon, but for now, with the majority of our clients, LOANS are still king!!!
So, how are you doing against your peers? Are banks and credit unions experiencing the same trends? What asset categories are most impacted?
You know that, at 
2. However, banks still hold most of the loan volume
The average bank has $1.196 Billion in loan balances were the average credit union has only $108 Million. This difference is mainly driven by the crazy-big $10 billion and more in asset behemoths.
3. Larger CUs compete with like-sized banks better than smaller sizes
Credit union over $1 billion in assets have a higher average total loan balance than banks from $1-$10 billion (There are only 5 credit unions in America over $10 billion in assets). Credit unions and banks from $20 – $100 million have the largest gap in average total loan balances with banks proving significantly higher.
Overall, banks have higher average loan balances than credit unions in all asset categories EXCEPT $1 billion – $10 billion. The bank-to-CU difference is only $3.1 million in total balances (for institutions $20-$50 million in assets) to $27.9 million in total balances (for institutions $500M-$1B).
4. What’s going on with institutions between $500 million and $1 billion?!?!
This category essentially remained flat, with banks actually experience a slight drop in average loan balances. In comparison, institutions in categories between $250-$500 million and $1 billion plus each experienced the biggest gains.
There seems to be a consumer preference for EITHER the smaller mom-and-pops or the super-gigantic.
5. As assets grow, loan yield drops
Yield drops from 5.70% for CUs with $20-50M down to 4.61% for assets of $1B+.
Banks are consistently higher and the spread between CUs and banks grows as assets increase.
Note: ALL asset categories experienced a drop in yield from Dec 13 – Sept 14 – yah, we weren’t shocked either…
So, how ARE you comparing to institutions in your peer group?
We know that, in general, credit unions are growing loan balances faster than banks (banks under $10 billon in assets, that is). But banks still hold a slight advantage as the to-go option for loans.
We know that the rich keep getting richer with larger institutions experiencing larger loan gains.
And we know that smaller institutions, in general, receive a higher yield on their loan dollars.
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