CREDIT UNION INDUSTRY STATISTICS AND KEY PERFORMANCE INDICATOR (KPI) TRENDS REPORT 3 RD QUARTER 2018 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 September 30,2018 8,000 7,000 6,000 5,000 4,000 3,000 6,479 6,216 5,967 5,761 5,551 2,000 1,000 0 Change in # of Credit Unions (Year-Over-Year) For Asset Class CU's Sep-17 Sep-18 50 0 Under $2M $2M-$10M $10M-$50M $50M-$100M $100M-$500M $500M+ All CU's 31 2 8 13-50 -48-38 -37-25 -100-85 -79-81 -77-150 -200-250 -206-210 Source: CUDATA.COM 3 rd Quarter 2018 Page 2
# of Credit Unions 7000 # of Credit Unions Trend by Asset Class Peer Groups 6000 5000 4000 3000 2000 456 1,056 764 2,133 478 1,056 757 2,024 508 1,077 742 1,916 539 1,052 744 1,835 552 1,060 707 1,758 1000 1,400 1,287 1,180 1,095 1,016 0 670 614 544 496 458 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 458 8.3% $ 408,170,000 % 146,124 0.1% 2 $2M -- < $5M 456 8.2% $ 1,589,220,000 0.1% 332,137 0.3% 3 $5M -- < $10M 560 10.1% $ 4,125,570,000 0.3% 686,767 0.6% 4 $10M -- < $20M 704 12.7% $ 10,180,050,000 0.7% 1,406,173 1.2% 5 $20M -- < $50M 1,054 19.0% $ 34,209,730,000 2.3% 3,956,311 3.4% 6 $50M -- < $100M 707 12.7% $ 50,839,570,000 3.5% 5,453,226 4.7% 7 $100M -- < $150M 355 6.4% $ 43,683,390,000 3.0% 4,298,863 3.7% 8 $150M -- < $250M 353 6.4% $ 68,789,560,000 4.7% 6,651,145 5.7% 9 $250M -- < $350M 182 3.3% $ 54,102,990,000 3.7% 5,005,915 4.3% 10 $350M -- < $450M 118 2.1% $ 46,895,380,000 3.2% 4,355,061 3.7% 11 $450M -- < $650M 154 2.8% $ 82,851,640,000 5.7% 7,118,812 6.1% 12 $650M -- < $850M 93 1.7% $ 68,994,530,000 4.7% 5,625,817 4.8% 13 $850M -- < $1B 51 0.9% $ 46,940,130,000 3.2% 3,880,696 3.3% 14 $1B -- < $2B 178 3.2% $ 247,539,680,000 17.0% 18,990,496 16.3% 15 $2B -- < $4B 77 1.4% $ 211,500,090,000 14.5% 16,251,928 13.9% 16 Over $4B 51 0.9% $ 484,433,870,000 33.2% 32,599,472 27.9% TOTAL Asset-Based Peer Group Statistics As of September 30,2018 5,551 10% $ 1,457,083,570,000 10% 116,758,943 10% Source: CUDATA.COM 3 rd Quarter 2018 Page 3
Number # of Credit Union Branch Offices 25,000 20,000 15,000 20,536 20,602 20,623 20,809 20,914 10,000 5,000 0 The Credit Union Industry as of September 30, 2018 As of 9/30/2018 9-Month $ Growth 9-Month YTD % Growth (Annualized) 12-Month $ Growth 12-Month % Growth Members 116.8M 4.1M 4.9% 4.9M 4.4% Assets $1,457.1B $61.8B 5.9% $77.1B 5.6% Loans $1,037.4B $69.5B 9.6% $89.9B 9.5% Shares $1,223.0B $49.3B 5.6% $58.1B 5.0% Investments $342.5B -$12.6B -4.7% -$20.5B -5.7% Capital $163.5B $10.5B 9.1% $13.0B 8.6% Source: CUDATA.COM 3 rd Quarter 2018 Page 4
In Billion % Net Interest Spread Cost/Yield Interest Yield / Cost of Interest Bearing Liabilities (%) 3.5 3 2.5 2 1.5 1 0.5 0 3.97 3.56 3.55 3.58 3.71 2.94 2.95 2.97 3.06 3.21 0.62 0.6 0.61 0.64 0.76 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Net Interest Spead Yield on Earning Assets Cost of Interest Bearing Liabilities Total Revenue Breakdown / Growth Trend $6 12.3% 15.0% $5 $4 $3 $2 $1 7.7% 8.2% 8.4% $7.0 $6.6 $6.1 $6.2 $5.1 $5.9 $5.6 $5.5 $24.4 $26.1 $28.4 $31.1-8.8% $8.2 $6.6 $35.0 1% 5.0% % -5.0% $ -1% Interest Income Fee Income Other Operating Income Revenue % Growth Source: CUDATA.COM 3 rd Quarter 2018 Page 5
In Billions 1.1 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0-0.1 Return on Avg Assets (Annualized) by Asset Class Peer Groups 1.05 0.72 0.62 0.53 0.24 0.17 0.96 Net Income Trend - (Year - To - Date) in Billions $12.00 $10.27 $10 $8.00 $6.86 $6.97 $7.35 $7.93 $6.00 $4.00 $2.00 $0 Source: CUDATA.COM 3 rd Quarter 2018 Page 6
1.20 Return On Assets (ROA %) Trend 1.00 0.80 0.60 0.96 0.40 0.83 0.80 0.78 0.79 0.20 0 Net Worth Ratio Trend (%) 12 10.93 11 10.85 10.9 11.22 10 8 6 4 2 0 Source: CUDATA.COM 3 rd Quarter 2018 Page 7
In Millions In Billions Net Worth Capital Growth Trend $16 $14 7.7 7.3 7.1 7.3 8.6 9.1 1 9.0 8.0 $12 $10 7.6 7.2 6.8 7.2 7.0 6.0 $8 $6 $4 $2 $ $122.6 $131.4 $140.4 $150.5 $163.5 5.0 4.0 3.0 2.0 1.0 Total Net Worth ($) 9-Month YTD % Growth (Annualized) 12-Month YOY % Growth Membership Growth Trend 14 6.0 12 4.5 4.5 4.9 5.0 10 8 3.4 3.9 4.0 4.0 4.4 4.0 3.5 3.0 6 2.9 4 2.0 2 1.0 10 103.4 107.5 111.9 116.8 # of Members 9-Month YTD % Growth (Annualized) 12-Month YOY % Growth Source: CUDATA.COM 3 rd Quarter 2018 Page 8
In Billions In Billions Asset Growth Trend $1,60 $1,40 $1,20 $1,00 $80 $60 $40 5.7 4.8 6.9 6.6 8.1 8.2 7.2 6.7 5.9 5.6 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 $20 $- $1,121.5 $1,194.9 $1,293.3 $1,38 $1,457.1 1.0 Total Assets ($) 9-Month YTD % Growth (Annualized) 12-Month YOY % Growth Loan Growth Trend $1,20 $1,00 $80 10.1 10.3 10.7 10.7 10.1 10.5 10.2 10.3 9.5 9.6 12.0 1 8.0 $60 6.0 $40 4.0 $20 2.0 $- $703.6 $778.7 $857.3 $947.5 $1,037.4 Total Loans ($) 9-Month YTD % Growth (Annualized) 12-Month YOY % Growth Source: CUDATA.COM 3 rd Quarter 2018 Page 9
In Billions IN BILLIONS $30 $25 Loan Origination by Loan Types - (Year-To-Date) $20 $15 $10 $5 $- Consumer $165.6 $181.7 $203.3 $219.4 $239.1 1st Mortgage $68.1 $96.0 $103.2 $104.3 $106.8 Other Real Estate $16.9 $19.4 $21.6 $25.4 $26.8 MBL's $12.2 $13.4 $15.6 $15.9 $17.1 Consumer 1st Mortgage Other Real Estate MBL's Loans Granted (Year-to-Date) All Loans vs. Real Estate Loans (In Billions) $45 $40 $35 $30 $25 $20 $15 $10 $5 $- $389.8 $343.6 $365.0 $310.6 $262.9 $115.4 $124.8 $129.7 $133.7 $85.0 Total Loans Total Real Estate Loans Source: CUDATA.COM 3 rd Quarter 2018 Page 10
In Billions 9 Total Loans to Total Deposits (%) 8 7 6 5 4 3 74.0 77.5 78.5 81.3 84.8 2 1 Auto Loan Growth Trend $35 $30 $25 $20 $15 11.5 10.2 16.1 14.8 14.5 14.7 14.8 13.7 12.3 12.4 18.0 16.0 14.0 12.0 1 8.0 $10 $5 $- $195.8 $224.7 $257.9 $293.2 $329.6 6.0 4.0 2.0 Total Auto Loans ($) 12-Month YOY % Growth 9-Month YTD % Growth (Annualized) Source: CUDATA.COM 3 rd Quarter 2018 Page 11
In Billion In Billions New Auto vs. Used Auto Loan Growth Trend $35 25.0 $30 $25 $20 $15 $10 $5 $- 20.5 16.2 13.5 13.9 13.4 13.0 16.3 11.311.9 11.8 $200.2 $18 $160.3 $141.6 $126.2 $69.6 $83.1 $97.6 $113.2 $129.4 2 15.0 1 5.0 New Auto New Auto % YTD Growth (Annualized) Used Auto Used Auto % YTD Growth (Annualized) $25 $20 $15 16.5 18.3 Indirect Auto Loan Growth Trend 21.6 21.4 20.9 19.4 22.2 21.6 22.0 19.7 25.0 2 15.0 $10 1 $5 5.0 $ $89.6 $109.0 $132.3 $159.9 $190.8 Total Indirect Auto Loans ($) 9-Month YTD % Growth (Annualized) 12-Month YOY % Growth Source: CUDATA.COM 3 rd Quarter 2018 Page 12
Auto vs Real Estate Loan % Growth Trend ( Annualized) 18.0 16.0 16.1 14.8 14.5 14.0 12.0 1 8.0 11.5 7.5 9.1 8.1 12.3 9.5 9.2 6.0 4.0 2.0 Auto Loans Real Estate Loans LOAN PORTFOLIO COMPOSITION AS OF SEPTEMBER 30,2018 Leases Receivable 0% All Other Secured Non RE Loans/LOC 4% Used Auto Loans 21% Residential Loans Secured By 1st Lien 35% New Auto Loans 14% Residential Loans Secured By Junior Lien 8% Other Unsecured Loans 4% Non-Fed Student Loans 1% Unsecured Credit Card Payday Loans Loans 0% 6% Commercial Loans/LOC NOT RE Secured 1% All Other RE Loans/LOC 0% Commercial Loans/LOC RE Secured 6% Source: CUDATA.COM 3 rd Quarter 2018 Page 13
In Billions Loan Delinquency and Net-Charge Offs Trend 1.00 0.90 0.80 0.70 0.60 0.50 0.40 0.30 0.20 0.10 0 0.85 0.78 0.77 0.79 0.67 0.53 0.56 0.56 0.48 0.46 Delinquent Loans To Total Loans Net Charge Offs to Avg. Loans Provision for Loan Losses ($) in Billions (Year-To-Date) $5.00 $4.50 $4.00 $3.50 $3.00 $2.50 $2.00 $1.50 $1.00 $0.50 $0 $4.66 $4.81 $3.58 $2.75 $2.15 Source: CUDATA.COM 3 rd Quarter 2018 Page 14
In Billions 1.2 1.0 Loan Loss Reserves Trend (Allowance for Loan Losses) 1.0 0.9 0.9 0.9 0.9 0.8 0.6 0.6 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 $1,40 $1,20 $1,00 $80 $60 $40 $20 $- Deposit Growth Trend 8.1 8.6 7.0 5.8 6.7 5.6 4.2 5.7 5.0 3.7 $951.3 $1,005.2 $1,091.9 $1,164.9 $1,223.0 1 9.0 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 Total Deposits ($) 9-Month YTD % Growth (Annualized) 12-Month YOY % Growth Source: CUDATA.COM 3 rd Quarter 2018 Page 15
Core Deposits (Year-To-Date) % Growth Sep-18 Sep-17 0.1% 0.2% 0.6% 3.6% 4.5% 5.3% 4.3% 4.2% 5.2% 7.0% 6.6% 7.2% 10.9% 13.4% All Other Shares IRA/KEOGH Money Market Certificates Regular Checking All Deposits % 2.0% 4.0% 6.0% 8.0% 1% 12.0% 14.0% 16.0% DEPOSIT PORTFOLIO COMPOSITION AS OF SEPTEMBER 30,2018 Certificates 22% Money Market 19% IRA/KEOGH 6% All Other Shares 1% Regular 37% Checking 15% Source: CUDATA.COM 3 rd Quarter 2018 Page 16
In Billions Total Investments Growth Trend $45 $40 $35 $30 $25 $20 $15 $10 $5 $ 5.0 3.4 0.4-1.2-1.9-2.3-3.2-4.6-4.7-5.7 $360.1 $353.5 $371.3 $363.0 $342.5 6.0 4.0 2.0-2.0-4.0-6.0-8.0 Total Investments 9-Month YTD % Growth (Annualized) 12-Month YOY % Growth 6.00 5.00 4.00 3.00 2.00 1.00 Net Interest Spread Trend 4.80 4.65 4.58 4.54 4.66 3.97 3.56 3.55 3.58 3.71 2.94 2.95 2.97 3.06 2.00 1.61 1.24 1.24 1.32 0.62 0.60 0.61 0.64 0.76 3.21 0 Yield On Avg Loans (Annualized) Yield On Avg Investments (Annualized) Yield On Earning Assets (Annualized) Cost of Funds (Annualized) Net Interest Spread (Annualized) Source: CUDATA.COM 3 rd Quarter 2018 Page 17
Net Interest Margin vs Operating Expense Ratio 3.5 3.0 2.5 3.1 3.1 3.1 3.1 3.1 3.1 2.9 2.9 2.9 3.0 2.0 1.5 1.0 0.5 Net Interest Income To Avg. Assets Operating Expense To Avg. Assets 120% Total Revenue Breakdown As a % of Total Income 100% 80% 60% 28.3 29.0 28.8 27.6 27.3 8.7 8.0 8.1 8.9 9.5 40% 20% 63.0 63.1 63.1 63.5 63.3 0% Loan Income Investments Income Fee and Other Operating Income Source: CUDATA.COM 3 rd Quarter 2018 Page 18
Dollars ($) 8 7 Efficiency Ratio % Trend (the cost incurred by a CU to generate one dollar of revenue) 73.9 73.7 72.8 71.1 68.9 6 5 4 3 2 1 Average Loan Balance/Member $18,000 $16,000 $14,000 $13,145 $13,549 $14,142 $14,716 $15,269 $12,000 $10,000 $8,000 $6,000 $4,000 $2,000 $- Source: CUDATA.COM 3 rd Quarter 2018 Page 19
In Millions Dollars ($) $11,000 $10,000 $9,000 $8,000 $7,000 $6,000 $5,000 $4,000 $3,000 $2,000 $1,000 $- Average Savings Balance/Member $10,154 $10,414 $10,475 $9,719 $9,516 $6.00 Asset / FTE (In Millions) $5.00 $4.33 $4.45 $4.64 $4.76 $4.83 $4.00 $3.00 $2.00 $1.00 $0 Source: CUDATA.COM 3 rd Quarter 2018 Page 20
Number $80,000 $70,000 $60,000 Salaries & Benefits/ FTE (Annualized) $72,967 $70,938 $68,488 $65,863 $75,533 $50,000 $40,000 $30,000 $20,000 $10,000 $- 450 400 Members / FTE 386 385 386 386 387 350 300 250 200 150 100 50 0 Source: CUDATA.COM 3 rd Quarter 2018 Page 21
Annual Operating Expense / FTE $160,000 $140,000 $131,165 $135,377 $139,567 $142,355 $147,566 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- 6 5 Checking Account Penetration Rate (%) 55.1 53.7 51.7 52.3 52.8 4 3 2 1 Source: CUDATA.COM 3 rd Quarter 2018 Page 22
7 Loan Penetration Rate (%) 6 53.6 55.6 56.4 57.6 58.2 5 4 3 2 1 2 Credit Card Loan Penetration Rate (%) 18.0 16.0 14.0 12.0 16.3 16.9 17.2 17.4 17.4 1 8.0 6.0 4.0 2.0 Source: CUDATA.COM 3 rd Quarter 2018 Page 23