CREDIT UNION INDUSTRY STATISTICS AND PERFORMANCE TRENDS REPORT 1ST 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 March 31, 2017 8,000 7,000 6,000 5,000 4,000 3,000 6,895 6,623 6,334 6,080 5,859 2,000 1,000 0 Change in # of Credit Unions (Year-Over-Year) For Asset Class CU's Mar-16 Mar-17 50 0 Under $2M $2M-$10M $10M-$50M $50M-$100M $100M-$500M $500M+ All CU's 25 24 0 2 0 9-50 -100-150 -66-54 -91-99 -122-200 -250-300 -225-254 -350-400 -343 Source: CUDATA.COM 1st Quarter 2017 Page 2
# of Credit Unions 8000 # of Credit Unions Trend by Asset Class Peer Groups 7000 6000 5000 4000 3000 2000 431 1,067 792 2,280 455 1,067 776 2,184 478 1,069 752 2,087 1,539 1,446 1,315 1,224 1,125 503 1,069 752 1,965 527 1,078 754 1,862 1000 0 786 695 633 567 513 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 513 8.8% $ 455,540,000 % 162,860 0.1% 2 $2M -- < $5M 508 8.7% $ 1,754,440,000 0.1% 374,758 0.3% 3 $5M -- < $10M 617 10.5% $ 4,567,960,000 0.3% 774,558 0.7% 4 $10M -- < $20M 769 13.1% $ 11,164,880,000 0.8% 1,555,570 1.4% 5 $20M -- < $50M 1,093 18.7% $ 35,116,040,000 2.6% 4,137,106 3.8% 6 $50M -- < $100M 754 12.9% $ 53,862,260,000 4.0% 5,821,206 5.3% 7 $100M -- < $150M 358 6.1% $ 43,811,120,000 3.2% 4,388,229 4.0% 8 $150M -- < $250M 374 6.4% $ 72,861,090,000 5.4% 7,023,266 6.4% 9 $250M -- < $350M 182 3.1% $ 54,390,080,000 4.0% 5,205,537 4.8% 10 $350M -- < $450M 106 1.8% $ 42,021,630,000 3.1% 3,790,223 3.5% 11 $450M -- < $650M 160 2.7% $ 85,651,540,000 6.3% 7,206,920 6.6% 12 $650M -- < $850M 91 1.6% $ 67,558,480,000 5.0% 5,829,283 5.3% 13 $850M -- < $1B 53 0.9% $ 48,333,000,000 3.6% 3,777,116 3.5% 14 $1B -- < $2B 164 2.8% $ 226,343,960,000 16.7% 17,477,563 16.0% 15 $2B -- < $4B 74 1.3% $ 200,692,060,000 14.8% 14,901,494 13.6% 16 Over $4B 43 0.7% $ 406,440,380,000 3% 26,958,959 24.6% TOTAL Asset-Based Peer Group Statistics As of March 31, 2017 5,859 10% $ 1,355,024,460,000 10% 109,384,648 10% Source: CUDATA.COM 1st Quarter 2017 Page 3
Number # of Credit Union Branch Offices 25,000 20,000 15,000 20,547 20,548 20,593 20,589 20,664 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 0.11 6 0.27 0.39 0.47 0.82 0.71 Source: CUDATA.COM 1st Quarter 2017 Page 4
In Billions Net Income Trend - (Year - To - Date) in Billions $2.50 $2.17 $2.12 $2.24 $2.31 $2.37 $2.00 $1.50 $1.00 $0.50 Return On Assets (ROA %) Trend 0.90 0.80 0.70 0.60 0.50 0.40 0.83 0.77 0.78 0.75 0.71 0.30 0.20 0.10 0 Source: CUDATA.COM 1st Quarter 2017 Page 5
In Billions Net Worth Ratio Trend (%) 12.0 10.3 10.6 10.8 10.8 10.7 1 8.0 6.0 4.0 2.0 $16 $14 $12 $10 $8 $6 $110.2 8.4 7.9 Net Worth Growth Trend $135.5 7.2 $126.8 7.4 6.9 $118.0 7.1 6.9 6.7 $145.0 7.1 6.6 9.0 8.0 7.0 6.0 5.0 4.0 3.0 $4 2.0 $2 1.0 $ Total Net Worth ($) 3-Month % Growth (Annualized) 12-Month % Growth Source: CUDATA.COM 1st Quarter 2017 Page 6
In Billions In Millions Membership Growth Trend 12 10 8 6 95.8 3.3 2.3 98.3 101.2 3.5 2.9 2.8 2.6 105.0 3.9 3.8 109.4 4.2 4.2 4.5 4.0 3.5 3.0 2.5 2.0 4 1.5 2 1.0 0.5 # of Members 3-Month % Growth (Annualized) 12-Month % Growth $1,60 Asset Growth Trend 16.0 $1,40 $1,20 13.2 $1,069.0 13.6 13.0 $1,111.8 $1,172.9 $1,255.9 12.0 $1,355.0 14.0 14.0 12.0 $1,00 1 $80 $60 5.4 5.5 7.1 7.9 8.0 6.0 $40 4.0 4.0 $20 2.0 Total Assets ($) 3-Month % Growth (Annualized) 12-Month % Growth Source: CUDATA.COM 1st Quarter 2017 Page 7
In Billions In Billions Loan Growth Trend $1,00 $90 $80 $70 $60 $50 $40 $30 $20 $10 $809.0 $895.5 10.6 10.8 10.7 $730.5 $607.3 $660.6 8.8 7.2 6.3 5.4 4.6 4.8 1.4 12.0 1 8.0 6.0 4.0 2.0 Total Loans ($) 3-Month % Growth (Annualized) 12-Month % Growth $15 Loan Origination by Loan Types - (Year-To-Date) $10 $5 MBL's $4.0 $4.0 $4.2 $4.8 $6.2 Other Real Estate $4.0 $4.4 $5.1 $6.1 $7.2 1st Mortgage $31.2 $17.5 $26.2 $26.7 $30.9 Consumer $43.5 $48.0 $53.8 $63.0 $69.3 Consumer 1st Mortgage Other Real Estate MBL's Source: CUDATA.COM 1st Quarter 2017 Page 8
In Billions $12 $10 $8 Loans Granted (Year-to-Date) All Loans vs. Real Estate Loans (In Billions) $82.7 $73.9 $89.2 $100.6 $113.5 $6 $4 $2 $35.2 $21.9 $31.3 $32.8 $38.1 Total Loans Total Real Estate Loans Total Loans to Total Deposits (%) 8 7 65.9 69.1 73.3 76.0 77.7 6 5 4 3 2 1 Source: CUDATA.COM 1st Quarter 2017 Page 9
In Billions In Billions Auto Loan Growth Trend $35 $30 $25 $20 $15 $10 $5 $183.2 9.1 6.5 $205.5 12.2 9.9 16.2 $238.8 11.4 $310.1 $272.4 14.1 13.8 11.9 10.9 18.0 16.0 14.0 12.0 1 8.0 6.0 4.0 2.0 Total Auto Loans ($) 3-Month % Growth (Annualized) 12-Month % Growth $35 New Auto vs. Used Auto Loan Trend 16.0 $30 $25 $20 $15 $10 $5 7.8 $118.1 5.8 $65.1 12.0 8.7 $131.4 $74.1 13.8 11.6 1 12.1 10.9 11.0 $148.7 $168.5 $188.9 $121.1 $103.9 $9 14.0 12.0 1 8.0 6.0 4.0 2.0 New Auto New Auto % YTD Growth (Annualized) Used Auto Used Auto % YTD Growth (Annualized) Source: CUDATA.COM 1st Quarter 2017 Page 10
In Billion $20 $18 $16 $14 $12 $10 $8 $6 $4 $2 $ Indirect Auto Loan Growth Trend $173.7 22.0 22.0 19.4 20.6 18.9 19.4 $142.5 18.1 $119.4 15.1 12.4 11.8 $97.8 $81.1 25.0 2 15.0 1 5.0 Total Indirect Auto Loans ($) 3-Month % Growth (Annualized) 12-Month % Growth Auto vs Real Estate Loan Growth Trend ( Year-to-Date) 9.9 11.4 11.9 10.9 6.5 4.3 4.8 5.5 7.4 0.3 Auto Loans Real Estate Loans Source: CUDATA.COM 1st Quarter 2017 Page 11
In Billion $7 $6 $5 $4 $3 Member Business Loan Growth Trend 15.2 14.4 $62.7 12.5 12.9 $54.5 13.5 12.3 $47.6 8.9 $42.2 11.3 $37.5 7.8 8.2 16.0 14.0 12.0 1 8.0 6.0 $2 4.0 $1 2.0 - Total Member Business Loans ($) 3-Month % Growth (Annualized) 12-Month % Growth Loan Growth (By Loan Type) - Annualized % Mar-17 Mar-16-8.1% -7.9% Unsecured Credit Card Loans -5.6% -5.1% All Other Unsecured Loans 10.9% 11.6% 11.0% 12.1% New Vehicle Loans Used Vehicle Loans 8.3% 6.8% 1st Mortgage Loans + LOC 3.1% -0.5% 6.4% 4.0% 7.2% 6.3% Other Real Estate Loans + LOC All Other Loans + LOC All Loans -1% -5.0% % 5.0% 1% 15.0% Source: CUDATA.COM 1st Quarter 2017 Page 12
Loan Portfolio Composition As of March 31, 2017 9% 0% 5% 6% 4% 14% Unsecured Credit Card Loans All Other Unsecured Loans/Total Loans New Vehicle Loans Used Vehicle Loans 1st Mortgage + LOC 41% 21% Other RE Loans + LOC Leases Receivable All Other Loans + LOC 1.20 1.00 0.80 0.60 Loan Delinquency and Net-Charge Offs Trend 1.02 0.81 0.69 0.71 0.69 0.61 0.58 0.5 0.52 0.47 0.40 0.20 0 Delinquent Loans To Total Loans Net Charge Offs to Avg. Loans Source: CUDATA.COM 1st Quarter 2017 Page 13
In Billions Provision for Loan Losses ($) in Billions (Year-To-Date) $1.40 $1.40 $1.20 $1.09 $1.00 $0.80 $0.70 $0.67 $0.81 $0.60 $0.40 $0.20 $0 1.4 1.3 Loan Loss Reserves Trend (Allowance for Loan Losses) 1.2 1.1 1.0 1.0 0.9 0.9 0.8 0.6 0.8 0.7 0.6 0.6 0.6 0.4 0.2 Allow For Loan Losses to T/Loans Allow For Loan Losses To T/Assets Source: CUDATA.COM 1st Quarter 2017 Page 14
In Billions Deposit Growth Trend $1,40 $1,20 $1,00 14.6 14.5 14.2 $922.1 $955.5 $997.2 13.7 $1,064.4 16.7 $1,153.3 18.0 16.0 14.0 12.0 $80 1 $60 $40 $20 5.1 3.6 4.4 6.7 8.4 8.0 6.0 4.0 2.0 Total Deposits ($) 3-Month % Growth (Annualized) 12-Month % Growth Core Deposit % Growth (Annualized) Mar-17 Mar-16 16.6% 26.0% All Other Shares 0.3% 2.2% IRA/KEOGH 11.4% 10.7% Money Market 5.1% 7.1% Certificates 23.3% 21.2% Regular 13.5% 31.9% Checking 13.7% 16.7% All Deposits % 5.0% 1% 15.0% 2% 25.0% 3% 35.0% Source: CUDATA.COM 1st Quarter 2017 Page 15
In Billions Deposit Portfolio Composition As of March 31, 2017 0% 18% 7% 1% 15% Checking Regular Certificates Money Market IRA/KEOGH 23% 37% All Other Shares Non-Member Total Investments Growth Trend $45 $40 $35 $30 $25 $20 $15 $10 $5 $ $408.6 $396.2 32.5 5.0 $382.0 $381.1 $392.4 33.7 29.5 28.5 20.8 3.0-0.3-3.0-3.6 4 35.0 3 25.0 2 15.0 1 5.0-5.0-1 Total Investments 3-Month % Growth (Annualized) 12-Month % Growth Source: CUDATA.COM 1st Quarter 2017 Page 16
Net Interest Spread Trend 5.16 4.86 4.69 4.61 4.51 3.55 3.50 3.51 3.56 3.59 2.85 2.89 2.91 2.96 2.98 1.07 1.18 1.18 1.30 1.44 0.70 0.62 0.59 0.60 0.61 Yield On Avg Loans (Annualized) Yield On Avg Investments (Annualized) Yield On Earning Assets (Annualized) Cost of Funds (Annualized) Net Interest Spread (Annualized) Net Interest Margin vs Operating Expense Ratio Net Interest Income To Avg. Assets Operating Expense To Avg. Assets 3.1 3.0 3.1 3.1 3.0 2.5 2.6 2.5 2.5 2.5 Source: CUDATA.COM 1st Quarter 2017 Page 17
120% Income Breakdown As a % of Total Income 100% 80% 60% 29.5 27.7 28.6 28.2 27.5 8.4 9.1 8.2 8.4 8.7 40% 20% 62.9 64.3 64.3 64.6 64.4 0% Loan Income Investments Income Fee and Other Operating Income 9 8 Efficiency Ratio % Trend (the cost incurred by a CU to generate one dollar of revenue) 78.8 79.7 79.8 80.5 81.0 7 6 5 4 3 2 1 Source: CUDATA.COM 1st Quarter 2017 Page 18
In Millions Dollars ($) $16,000 $14,000 $12,000 Average Loan Balance/Member $12,702 $12,964 $13,365 $11,851 $14,511 $10,000 $8,000 $6,000 $4,000 $2,000 $6.00 Asset / FTE (In Millions) $5.00 $4.30 $4.35 $4.46 $4.60 $4.77 $4.00 $3.00 $2.00 $1.00 $0 Source: CUDATA.COM 1st Quarter 2017 Page 19
Number $80,000 $70,000 $60,000 $50,000 $40,000 $30,000 $20,000 $10,000 Salaries & Benefits/ FTE (Annualized) $71,707 $68,785 $65,585 $66,072 $74,218 450 400 Members / FTE 385 385 385 384 385 350 300 250 200 150 100 50 0 Source: CUDATA.COM 1st Quarter 2017 Page 20
$160,000 $140,000 $120,000 Annual Operating Expense / FTE $139,377 $134,986 $129,864 $129,948 $142,653 $100,000 $80,000 $60,000 $40,000 $20,000 6 5 Checking Account Penetration Rate (%) 51.7 54.6 54.4 55.3 52.1 4 3 2 1 Source: CUDATA.COM 1st Quarter 2017 Page 21
7 Loan Penetration Rate (%) 65.0 6 5 49.9 51.8 54.0 56.4 4 3 2 1 17.5 17.0 16.5 16.0 Credit Card Loan Penetration Rate (%) 17.1 16.6 16.0 17.2 15.5 15.3 15.0 14.5 14.0 Source: CUDATA.COM 1st Quarter 2017 Page 22