CREDIT UNION INDUSTRY STATISTICS AND PERFORMANCE TRENDS REPORT 4TH QUARTER 2017 CUDATA.COM Data Intelligence and Industry Insights for Credit Union Management 600 E Sumac Avenue, Provo, UT 84604
# of Credit Unions # of Credit Unions as of December 31, 2017 8,000 7,000 6,000 5,000 4,000 3,000 6,687 6,402 6,147 5,909 5,689 2,000 1,000 0 Change in # of Credit Unions (Year-Over-Year) For Asset Class CU's Dec-16 Dec-17 50 0 Under $2M $2M-$10M $10M-$50M $50M-$100M $100M-$500M $500M+ All CU's 29 20 12 1-50 -100-150 -62-43 -87-100 -109-79 -19-21 -200-250 -220-238 -300 Source: CUDATA.COM 4th Quarter 2017 Page 2
# of Credit Unions 7000 6000 5000 4000 3000 2000 # of Credit Unions Trend by Asset Class Peer Groups 435 460 491 1,051 511 1,060 1,062 785 1,074 753 745 746 2,193 2,103 1,996 1,887 540 1,053 727 1,808 1000 1,485 1,362 1,256 1,156 1,069 0 738 664 597 535 492 Under $2M $2M-$10M $10M-$50M $50M-$100M $100M-$500M $500M+ Peer Group Asset Size # of CU's % of Total CU's Total Assets ($) % of Total Assets # of Members % of Total Members 1 Under $2M 492 8.6% $ 445,500,000 % 165,842 0.1% 2 $2M -- < $5M 479 8.4% $ 1,669,610,000 0.1% 359,065 0.3% 3 $5M -- < $10M 590 10.4% $ 4,358,600,000 0.3% 732,542 0.7% 4 $10M -- < $20M 746 13.1% $ 10,833,170,000 0.8% 1,525,885 1.4% 5 $20M -- < $50M 1,062 18.7% $ 34,342,010,000 2.5% 4,055,617 3.6% 6 $50M -- < $100M 727 12.8% $ 51,997,840,000 3.7% 5,626,536 5.0% 7 $100M -- < $150M 347 6.1% $ 42,465,010,000 3.0% 4,220,230 3.7% 8 $150M -- < $250M 364 6.4% $ 70,900,440,000 5.1% 6,859,851 6.1% 9 $250M -- < $350M 178 3.1% $ 53,144,490,000 3.8% 5,050,963 4.5% 10 $350M -- < $450M 111 2.0% $ 43,805,550,000 3.1% 4,031,479 3.6% 11 $450M -- < $650M 161 2.8% $ 86,633,050,000 6.2% 7,443,723 6.6% 12 $650M -- < $850M 85 1.5% $ 63,235,890,000 4.5% 5,294,536 4.7% 13 $850M -- < $1B 57 1.0% $ 52,278,940,000 3.7% 4,333,015 3.8% 14 $1B -- < $2B 169 3.0% $ 234,578,890,000 16.8% 18,132,419 16.1% 15 $2B -- < $4B 74 1.3% $ 200,835,360,000 14.4% 15,286,232 13.6% 16 Over $4B 47 0.8% $ 443,799,030,000 31.8% 29,539,558 26.2% TOTAL Asset-Based Peer Group Statistics As of December 31, 2017 5,689 10% $ 1,395,323,380,000 10% 112,657,493 10% Source: CUDATA.COM 4th Quarter 2017 Page 3
Number # of Credit Union Branch Offices 25,000 20,000 15,000 20,558 20,586 20,588 20,620 20,858 10,000 5,000 0 Return on Avg Assets (Annualized) by Asset Class Peer Groups 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0-0.1-0.29 0.10 0.30 0.43 0.47 0.89 0.78 Source: CUDATA.COM 4th Quarter 2017 Page 4
In Billions Net Income Trend - (Year - To - Date) in Billions $12.00 $10 $8.89 $8.87 $8.84 $9.69 $10.52 $8.00 $6.00 $4.00 $2.00 $0 Return On Assets (ROA %) Trend 0.80 0.70 0.60 0.50 0.78 0.80 0.75 0.77 0.78 0.40 0.30 0.20 0.10 0 Source: CUDATA.COM 4th Quarter 2017 Page 5
In Billions Net Worth Ratio Trend (%) 12 10.78 10.97 10.93 10.9 10.96 10 8 6 4 2 0 $16 $14 $12 $10 $8 $6 $4 $2 $ Net Worth Growth Trend $142.7 7.5 $133.2 $124.6 $115.9 7.3 7.1 6.9 $153.0 7.2 7.6 7.5 7.4 7.3 7.2 7.1 7.0 6.9 6.8 6.7 6.6 Total Net Worth ($) 12-Month % Growth Source: CUDATA.COM 4th Quarter 2017 Page 6
In Billions In Millions Membership Growth Trend 12 10 8 97.5 100.5 104.0 3.5 3.1 112.7 108.2 4.1 4.1 4.5 4.0 3.5 3.0 6 2.5 2.5 2.0 4 1.5 2 1.0 0.5 # of Members 12-Month % Growth Asset Growth Trend $1,60 $1,40 $1,20 $1,00 $1,075.3 $1,136.1 5.7 7.3 7.4 $1,309.1 $1,219.2 $1,395.3 6.6 8.0 7.0 6.0 5.0 $80 3.9 4.0 $60 3.0 $40 2.0 $20 1.0 Total Assets ($) 12-Month % Growth Source: CUDATA.COM 4th Quarter 2017 Page 7
IN BILLIONS In Billions Loan Growth Trend $1,20 $1,00 $80 7.9 $653.1 $720.8 10.4 10.5 $796.5 $879.8 10.5 $967.9 1 12.0 1 8.0 $60 6.0 $40 4.0 $20 2.0 Total Loans ($) 12-Month % Growth Loan Origination by Loan Types - (Year-To-Date) $35 $30 $25 $20 $15 $10 $5 Consumer $191.4 $223.9 $239.1 $266.9 $289.5 1st Mortgage $120.5 $94.3 $125.8 $143.5 $140.7 Other Real Estate $20.6 $22.9 $26.4 $29.0 $33.8 MBL's $16.8 $16.7 $19.3 $21.7 $21.5 Consumer 1st Mortgage Other Real Estate MBL's Source: CUDATA.COM 4th Quarter 2017 Page 8
In Billions $60 Loans Granted (Year-to-Date) All Loans vs. Real Estate Loans (In Billions) $50 $40 $349.3 $357.9 $410.6 $461.2 $485.5 $30 $20 $141.2 $117.2 $152.2 $172.6 $174.4 $10 Total Loans Total Real Estate Loans Total Loans to Total Deposits (%) 9 8 70.8 74.8 77.4 79.5 82.5 7 6 5 4 3 2 1 Source: CUDATA.COM 4th Quarter 2017 Page 9
In Billions In Billions Auto Loan Growth Trend $40 $35 $30 $25 $20 $15 11.2 $200.6 15.7 $232.1 14.0 $264.5 14.1 $301.8 $335.9 11.3 18.0 16.0 14.0 12.0 1 8.0 6.0 $10 4.0 $5 2.0 Total Auto Loans ($) 12-Month % Growth $40 New Auto vs. Used Auto Loan Growth Trend 25.0 $35 $30 $25 $20 $15 12.7 10.5 $128.6 20.9 16.8 12.9 12.8 16.0 13.1 $163.6 $183.9 12.4 $202.6 $145.1 10.2 2 15.0 1 $10 $5 $72.0 $87.0 $100.9 $117.9 $133.3 5.0 New Auto New Auto % YTD Growth (Annualized) Used Auto Used Auto % YTD Growth (Annualized) Source: CUDATA.COM 4th Quarter 2017 Page 10
In Billion $25 Indirect Auto Loan Growth Trend 25.0 $20 18.6 21.9 20.6 $166.2 21.1 $195.7 17.7 2 $15 $137.3 15.0 $113.9 $10 $93.4 1 $5 5.0 $ Total Indirect Auto Loans ($) 12-Month % Growth Auto vs Real Estate Loan Growth Trend ( Year-to-Date) 15.7 14.0 14.1 11.2 5.7 7.5 8.9 8.6 11.3 9.5 Auto Loans Real Estate Loans Source: CUDATA.COM 4th Quarter 2017 Page 11
In Billion Member Business Loan Growth Trend $7 $6 $5 $4 $3 11.3 $40.9 $46.7 14.0 $53.0 13.5 $60.7 14.6 $55.5 2 15.0 1 5.0 $2 - $1 (5.0) (8.6) (1) Total Member Business Loans ($) 12-Month % Growth Loan Portfolio Composition As of December 31, 2017 7% 2% 6% 1% 6% 0%4% Unsecured Credit Card Loans Payday Loans 14% Non-Fed Student Loans Other Unsecured Loans New Auto Loans Used Auto Loans 35% Leases Receivable 4%0% 21% All Other Secured Non RE Loans/LOC Residential Loans Secured By 1st Lien Source: CUDATA.COM 4th Quarter 2017 Page 12
In Billions 1.20 1.00 0.80 Loan Delinquency and Net-Charge Offs Trend 1.01 0.85 0.81 0.83 0.81 0.60 0.56 0.49 0.48 0.55 0.59 0.40 0.20 0 Delinquent Loans To Total Loans Net Charge Offs to Avg. Loans Provision for Loan Losses ($) in Billions (Year-To-Date) $7.00 $6.45 $6.00 $5.09 $5.00 $4.02 $4.00 $3.00 $2.76 $3.06 $2.00 $1.00 $0 Source: CUDATA.COM 4th Quarter 2017 Page 13
In Billions 1.2 1.0 1.1 Loan Loss Reserves Trend (Allowance for Loan Losses) 1.0 0.9 0.9 0.9 0.8 0.6 0.7 0.6 0.6 0.6 0.6 0.4 0.2 Allow For Loan Losses to T/Loans Allow For Loan Losses To T/Assets Deposit Growth Trend $1,40 8.0 $1,20 $1,00 $80 $60 $922.0 3.7 $963.1 4.5 $1,029.1 6.9 7.6 $1,107.1 $1,173.7 6.0 7.0 6.0 5.0 4.0 3.0 $40 2.0 $20 1.0 Total Deposits ($) 12-Month % Growth Source: CUDATA.COM 4th Quarter 2017 Page 14
Core Deposit % Growth (Annualized) Dec-17 Dec-16-0.6% 1.9% 1.9% 2.5% 4.0% 7.5% 6.2% 5.0% 7.0% 6.0% 7.6% 9.5% 11.8% All Other Shares 13.1% IRA/KEOGH Money Market Certificates Regular Checking All Deposits -2.0% % 2.0% 4.0% 6.0% 8.0% 1% 12.0% 14.0% Deposit Portfolio Composition As of December 31, 2017 0.86% 6.68% 14.58% Checking Regular 18.26% Certificates 22.35% 36.39% Money Market IRA/KEOGH All Other Shares Source: CUDATA.COM 4th Quarter 2017 Page 15
In Billions Total Investments Growth Trend $45 $40 $35 $30 $25 $20 $15 $10 $5 $ $369.0 $356.6 1.6 $362.2 $361.9 $355.1-0.1-1.9-2.4-3.4 2.0 1.0-1.0-2.0-3.0-4.0 Total Investments 12-Month % Growth Net Interest Spread Trend 5.02 4.80 4.65 4.57 4.56 3.57 3.57 3.55 3.60 2.88 2.94 2.94 2.98 3.08 3.75 1.66 1.13 1.24 1.23 1.35 0.69 0.63 0.61 0.62 0.67 Yield On Avg Loans (Annualized) Yield On Earning Assets (Annualized) Yield On Avg Investments (Annualized) Cost of Funds (Annualized) Net Interest Spread (Annualized) Source: CUDATA.COM 4th Quarter 2017 Page 16
Net Interest Margin vs Operating Expense Ratio Net Interest Income To Avg. Assets Operating Expense To Avg. Assets 3.1 3.1 3.1 3.1 2.8 2.8 2.9 2.9 3.0 3.1 120% Income Breakdown As a % of Total Income 100% 80% 60% 29.5 28.8 29.0 29.2 27.8 8.5 8.7 8.0 8.1 9.0 40% 20% 62.8 63.6 63.8 63.7 63.9 0% Loan Income Investments Income Fee and Other Operating Income Source: CUDATA.COM 4th Quarter 2017 Page 17
Dollars ($) 8 Efficiency Ratio % Trend (the cost incurred by a CU to generate one dollar of revenue) 75.2 74.3 74.1 72.7 71.1 7 6 5 4 3 2 1 Average Loan Balance/Member $16,000 $14,000 $12,809 $13,212 $13,722 $14,210 $14,813 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 Source: CUDATA.COM 4th Quarter 2017 Page 18
Dollars ($) $11,000 $10,000 Average Savings Balance/Member $9,460 $9,582 $9,896 $10,228 $10,418 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $80,000 $70,000 $60,000 Salaries & Benefits/ FTE (Annualized) $70,914 $68,775 $64,987 $66,197 $72,831 $50,000 $40,000 $30,000 $20,000 $10,000 Source: CUDATA.COM 4th Quarter 2017 Page 19
Number 450 400 Members / FTE 384 385 384 385 385 350 300 250 200 150 100 50 0 $160,000 $140,000 Annual Operating Expense / FTE $139,615 $142,534 $135,601 $131,323 $131,899 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 Source: CUDATA.COM 4th Quarter 2017 Page 20
6 5 Checking Account Penetration Rate (%) 54.0 55.1 52.6 51.9 52.4 4 3 2 1 7 Loan Penetration Rate (%) 6 52.3 54.3 55.8 57.2 58.0 5 4 3 2 1 Source: CUDATA.COM 4th Quarter 2017 Page 21
18.0 Credit Card Loan Penetration Rate (%) 17.5 17.0 16.5 16.6 17.0 17.3 17.5 16.0 15.9 15.5 15.0 Source: CUDATA.COM 4th Quarter 2017 Page 22