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Wilmington, NC (December 12, 2024): Glatt Consulting Group, Inc. reported today that the Credit Union Industry HealthScore for Q3 2024 has declined to 5.960, representing a 2.95% year-over-year drop from Q3 2023's score of 6.141. This decline in the score marks the 10th decline in the last 11 quarters. The score remains above the benchmark average of 5, indicating the industry’s performance is still at a historically average level.
The chart below plots the year-over-year score percent change in the industry aggregate HealthScore.
Key Findings:
Key Findings:
Asset Growth: The Asset Growth (AG) score dropped to 2.59 from 3.15 in the previous quarter, reflecting ongoing challenges in maintaining growth amidst economic uncertainty.
Loan Growth: Loan Growth (LG) scored 2.43, continuing its downward trend. Despite recent interest rate cuts by the Federal Reserve aimed at easing borrowing conditions, credit unions are still contending with earlier rate increases and inflationary pressures.
Efficiency and Costs: Rising operational costs due to inflation and wage increases continue to strain credit unions. Operating Expenses (OE) scored 5.34, while Efficiency (EF) was 6.19.
Membership Growth: Membership Growth (MG) remains weak at 2.26, highlighting the need for credit unions to focus on engaging younger generations and expanding their member base.
Credit Quality: Delinquent Loans (DL) scored 6.27, and Net Charge-Offs (CO) scored 6.02, both showing year-over-year declines but remaining above the benchmark average.
Industry Leaders:
Industry Leaders:
Three credit unions stood out this quarter for their exemplary performance:
Meridian Mississippi ANG (Meridian, MS): HealthScore 9.0
Moonlight Credit Union (Worthington, PA): HealthScore 8.912
Maun Credit Union (Kendall Park, NJ): HealthScore 8.647
These institutions demonstrate that strong fundamentals and a member-focused approach can drive success, even in challenging environments.
Component Scores
Component Scores
There are 17 metrics that are scored to arrive at individual and industry scores. These components and their Q3 scores are outlined below. For all scores, five is the historical benchmark. The latest scores re listed in the table below.
About Glatt Consulting Group
About Glatt Consulting Group
Glatt Consulting Group is a leading provider of strategy and governance consulting services for credit unions.
About CU HealthScore
About CU HealthScore
CU HealthScore is a metric and suite of tools that track and report on the health of US-based credit unions. It was created by Tom Glatt, the founder of Glatt Consulting Group, Inc., a consulting firm that offers strategy and governance solutions for credit union leaders.
The HealthScore uses call report data published by the National Credit Union Administration (NCUA) to examine key performance indicators (KPIs) and provide insights into the overall health and performance of individual credit unions and the industry as a whole. Credit unions can use the HealthScore to identify strengths, address weaknesses, and make data-driven decisions to improve their performance.
HealthScore data is available through https://www.cuhealthscore.com, which offers both free and paid subscriptions for data access.
Contact
Contact
Tyler Glatt
Glatt Consulting Group, Inc.
(888) 217-5988
tyler@glattconsulting.com
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