Credit Union Quarterly Performance Report

Transcription

1 Credit Union Quarterly Performance Report Third Quarter 2013

2 Contents 2013 Quarterly Snapshot Nevada 3rd Quarter CALLAHAN PEER TO PEER DATA SUMMARY ( )... 3 GENERAL METRICS... 3 LOAN AND SHARE GROWTH... 4 MEMBER METRICS... 9 PRODUCTIVITY METRICS EFFICIENCY METRICS Appendix Nevada Credit Unions Page 2

3 2013 Quarterly Snapshot Nevada 3rd Quarter 2013 CALLAHAN PEER TO PEER DATA SUMMARY ( ) Pool Reporting Average Assets Nevada Northern = 9 $ 123,791,123 Nevada Southern = 9 $ 284,318,042 California = 390 $ 361,221,240 All U.S. = 6,742 $ 158,439,535 GENERAL METRICS rd Quarter Rpt. - General Metrics As set Loan Share loans/sha net_worth/ Name Total Assets Growth Total Loans Growth Total Shares Growth RES assets Nevada - Northern $123,791, % $66,350, % $109,468, % 60.61% 9.98% Nevada - Southern $284,318, % $150,024, % $256,509, % 58.49% 9.05% CA - CUs $361,221, % $191,583, % $309,852, % 61.83% 10.83% All Credit Unions in U.S. $158,439, % $94,660, % $135,910, % 69.65% 10.65% In summary, the credit unions based in Northern Nevada are closely trending their counter parts in California and in the overall U.S. Share growth has slowed from the recent past and loan growth is showing acceleration, actually passing share growth for the first time in years. Auto lending seems to be the brightest star in the loan category. For Southern Nevada, however, the story is still about recovering from the great recession. This hard hit part of the state is bouncing back but at a significantly slower pace than credit unions in other geographic areas. Members continue to push increasing dollars in to savings and are hesitant to take on additional debt. Overall in the state both areas are on a very positive trend in decreasing loan delinquencies and chargeoffs. Southern Nevada lags behind the Northern part of the state but the trend is definitely in the right direction. Northern Nevada credit unions have a much small portion of their loan portfolio (41%) in 1 st mortgage loans compared to Southern Nevada (69%). This may be a large reason why it has been so difficult for the Southern Nevada credit unions to recover. Increases in auto lending is a bright spot. Areas to keep a watchful eye on are related to productivity and efficiency. Measurements on revenues per employee and members served per employee show a downward trend for both Nevada groups, although not significant, something that should be watched. In the area of efficiency both Nevada groups also show an increase in this measure. Both showed a significant spike in this area in the 1 st Quarter and then a decrease in the 2 nd Quarter but are on a slight rise again. It should be noted that their California peers and U.S. credit unions overall are also showing a trending rise in this measure. Page 3

4 LOAN AND SHARE GROWTH 10.00% 5.00% 0.00% Loan Growth 7.37% 5.00% 4.26% 5.00% 6.80% 10.00% 15.00% 20.00% Loan Growth Sep % -8.51% 1.43% 4.88% Dec % -9.64% 1.64% 5.03% Mar % -8.87% 1.39% 5.32% Jun % -8.05% 2.22% 5.88% Sep % -6.80% 5.00% 7.37% Northern Nevada credit unions are showing a strong upward trend for loan growth, on par with California credit unions in general and slightly behind U.S. credit unions overall. Southern Nevada credit unions, however, are still experiencing a negative growth rate, although they are trending a bit more positive. Page 4

5 Share Growth 10.00% 5.00% 0.00% 4.69% 3.91% 2.04% 1.05% 5.00% 10.00% 15.00% Share Growth Sep % -2.52% 5.82% 6.90% Dec % -1.67% 5.57% 6.61% Mar % -1.14% 4.50% 5.64% Jun % 0.28% 3.65% 5.21% Sep % 2.04% 3.91% 4.69% On the share side Northern Nevada credit unions have seen a decrease in growth on a similar, albeit a more accelerated, trajectory as their counterparts in California and the U.S. overall. Southern Nevada credit unions, however, are seeing continued increase in the growth percentage of shares. Page 5

6 75.00% Loans/Shares 70.00% 69.65% 65.00% 60.00% 61.83% 60.61% 58.49% 55.00% Loans/Shares Sep % 64.03% 61.19% 67.91% Dec % 62.15% 61.35% 68.03% Mar % 59.14% 58.81% 65.83% Jun % 58.38% 60.05% 67.36% Sep % 58.49% 61.83% 69.65% Northern Nevada credit unions are seeing a sharp increase in their loans to shares ratio. A similar trajectory as U.S. credit unions overall and California based credit unions. U.S. credit unions overall are performing at a higher rate in this measure. Southern Nevada credit unions although appearing to be leveling off in this ratio over the last quarter have yet to see the same surge as their counterparts in other geographic locations. Page 6

7 20.00% Total Auto Loan Growth 15.00% 10.00% 5.00% 0.00% 5.00% 13.21% 10.85% 4.58% 4.27% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% Total Auto Loan Growth Sep % -4.86% 3.02% 7.91% Dec % -4.78% 5.31% 8.68% Mar % -5.85% 8.73% 9.61% Jun % -4.78% 10.92% 10.23% Sep % -4.27% 13.21% 10.85% Growth in the auto loan portfolio is the shining star for almost all credit unions this year. California credit unions are experiencing a 13% growth rate followed U.S. credit unions in general at almost 11%. In Northern Nevada the trend is also up sharply from the recent past with a healthy almost 5% gain. Southern Nevada continues to struggle showing a 4% decline, a continued flat line over the past several quarters. Page 7

8 $15,000 Average Auto Loan Balance $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 What s Coming. In case you missed auto sales yesterday, here is the recap. The Black Friday hype might not have worked for retailers this year, but it certainly worked for car dealers. Auto sales in November exceeded all expectations by recording an annualized sales rate of 16.4 million. This was the best rate since February Auto stock analysts weren t thrilled by the news as the sales bump came on some big discounts, but this is good news for auto lenders. This level of sales is not likely to be sustained. Sales hit 16.1 million in August and then slumped for two months. But the overall level of sales going forward should average around 15.5 million. Dwight Johnston, Chief Economist The California & Nevada Credit Union Leagues Daily Commentary - December 4, 2013 Page 8

9 MEMBER METRICS rd Quarter - Member Metrics Average Loan Balance Per Mem ber Current Mem bership Growth Shares Per Shares Per Loans & Share Per Name Mem ber Mem ber Member Nevada - Northern $13,581 $9,255 $9, % Nevada - Southern $14,761 $10,302 $10, % CA - CUs $16,557 $12,341 $12, % All Credit Unions in U.S. $12,803 $9,448 $9, % 6.00% Membership Growth 4.00% 2.00% 0.00% 2.00% 4.00% 2.87% 1.75% 0.88% 2.32% 6.00% 8.00% 10.00% 12.00% Membership Growth Sep % -5.39% 2.04% 3.75% Dec % -4.01% 1.02% 2.91% Mar % -3.87% 1.72% 2.94% Jun % -3.15% 1.64% 2.88% Sep % -2.32% 1.75% 2.87% Page 9

10 Members Filing for Bankruptcy Members Filing for Bankruptcy Sep Dec Mar Jun Sep Although, for all groups, we are seeing significantly lower bankruptcy filings than at the peak in 2010 (see actuals below)there has been a trending up in this measure beginning in the 2 nd Quarter and continuing in the 3 rd Quarter of This should be closely watched moving forward. Members Filing for Bankruptcy Dec The Credit Union National Association (CUNA) estimates that Nevada Credit Unions provide $20,553,570 in direct financial benefits to the state s 335,247 members during the twelve months ending June These benefits are equivalent to $61 per member or $116 per member household. Estimated total benefits of credit union membership are calculated by accounting for differences in credit union and bank pricing. Page 10

11 PRODUCTIVITY METRICS rd Quarter Rpt. - Productivity Metrics Loan and Share Accounts per FTE Loans Originated per FTE Loan Income per FTE Average Salary and Benefits per FTE $ Revenue / $ of Salary & Benefits Name Members per FTE Assets per FTE Net Income Per FTE Nevada - Northern $3,206, $69,956 $3,889 $43,780 $3.02 Nevada - Southern $3,827, $88,704 $12,991 $50,304 $3.17 All Credit Unions in U.S $4,239, $93,359 $7,137 $48,582 $3.06 CA - CUs $5,529, $103,371 $8,586 $58,462 $2.93 $290,000 Revenue per Employee $270,000 $250,000 $230,000 $210,000 $190,000 $170,000 $228,111 $212,298 $198,452 $176,333 $150,000 Revenue per Employee Sep-2012 $195,690 $233,513 $243,827 $207,099 Dec-2012 $189,810 $230,493 $242,517 $206,698 Mar-2013 $179,338 $212,039 $232,674 $199,916 Jun-2013 $186,375 $215,334 $229,858 $198,716 Sep-2013 $176,333 $212,298 $228,111 $198,452 Page 11

12 Members per Employee Members per Employee Sep Dec Mar Jun Sep Although the revenues and members per employee measures are down for both Northern and Southern Nevada credit unions combined with the other more positive measures in this report this indicates that there is available capacity that these credit unions can take on with their existing infrastructure. However, if avenues for increasing revenues are not found and these trends continue other more difficult expense decisions for the credit unions are on the horizon. Page 12

13 EFFICIENCY METRICS rd Quarter Rpt. - Efficiency Metrics Efficiency Ratio (before provision for Loan Losses) Operating Expense/Average As sets Name Operating Expense / Member Revenue Per Member Net Income Per Member Nevada - Northern $ % 2.97% $432 $87 Nevada - Southern $ % 2.12% $475 $130 CA - CUs $ % 2.26% $445 $106 All Credit Unions in U.S. $ % 2.44% $387 $ % Efficiency Ratio (before Provision for Loan Losses) 80.00% 75.00% 70.00% 78.65% 75.56% 74.85% 69.57% 65.00% 60.00% Efficiency Ratio (before Provision for Loan Losses) Sep % 64.65% 70.66% 72.92% Dec % 65.75% 70.95% 72.98% Mar % 68.99% 71.85% 74.32% Jun % 68.46% 72.73% 74.49% Sep % 69.57% 74.85% 75.56% Page 13

14 4.50% 4.00% 3.50% 3.00% Operating Expense Ratio 4.20% 3.74% 3.16% 2.82% 2.50% 2.00% Operating Expense Ratio Sep % 3.67% 2.82% 3.17% Dec % 3.67% 2.85% 3.19% Mar % 3.64% 2.72% 3.07% Jun % 3.64% 2.76% 3.10% Sep % 3.74% 2.82% 3.16% Page 14

15 8.00% Delinquent Loans/Loans 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Delinquent Loans/Loans Sep % 3.12% 1.26% 1.17% Dec % 3.02% 1.21% 1.16% Mar % 2.41% 1.01% 1.02% Jun % 2.47% 1.10% 1.04% Sep % 2.29% 0.96% 1.02% Page 15

16 7.00% Net Charge-Offs/Average Loans 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Net Charge-Offs /Average Loans Sep % 4.69% 0.99% 0.74% Dec % 4.05% 0.96% 0.74% Mar % 2.03% 0.64% 0.61% Jun % 1.62% 0.56% 0.58% Sep % 1.57% 0.55% 0.57% In both delinquencies and charge offs both Northern and Southern Nevada credit unions are on a positive trajectory. The worst of the great recession appears to be behind as the light of a more positive future appears. Page 16

17 250.00% Allowance for Loan Loss/Delinquent Loans % % % 50.00% 0.00% Allowance for Loan Loss/Delinquent Loans Sep % % % % Dec % % % % Mar % % % % Jun % % % % Sep % % % % Although all groups reached a recent peak and then saw a decline in this ratio recently credit unions in Southern Nevada and in California are seeing a slight uptick here in the most recent quarter. Northern Nevada and U.S. credit unions overall continue to see a downward trend that began in the second quarter. Something to watch closely moving forward. Page 17

18 Appendix Nevada Credit Unions Northern Nevada E. W. No 401 Elko Financial Horizons Frontier Financial Great Basin Greater Nevada Sierra Pacific Churchill Reno City Employees Southern Nevada Boulder Dam Clark County Pahranagat Valley Plus Silver State Schools Stage Employees WestStar Las Vegas UP Page 18