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FOR IMMEDIATE RELEASE
Wilmington, NC– March 19, 2025 – The Credit Union Industry HealthScore for Q4 2024 has declined to 5.62, representing a 2.11% year-over-year decrease from Q4 2023, according to the latest analysis. While still above the benchmark average of 5, this continued downward trend signals persistent challenges within the credit union sector.
The Year-Over-Year %Change in the Credit Union Industry HealthScore. This is the 6th straight decline in score.
The HealthScore is a proprietary metric designed to provide a comprehensive assessment of credit union financial health. It operates on a scale from 0 to 10, where 5 represents performance consistent with historical industry averages. Scores above 5 indicate above-average performance, while those below 5 suggest areas needing attention. The HealthScore evaluates key performance indicators across five critical categories: Growth, Credit Quality, Earnings, Member Relationships, and Liquidity & Capital.
Key Score Findings
Key Score Findings
The Q4 2024 HealthScore reveals a complex landscape.
Asset Growth (AG) has surged to 2.47, indicating increased asset accumulation. However, Loan Growth (LG) plummeted to 2.24, and Membership Growth (MG) dropped to 2.09, highlighting a significant slowdown in these critical areas.
Credit quality is also a concern, with Delinquent Loans (DL) at 6.07 and Net Charge-Offs (CO) at 5.86, showing a deterioration. Loan Coverage (LC) sits below the average health number, at 4.87.
Earnings are under pressure, with Operating Expenses (OE) at 5.24 and Return on Assets (RA) at 5.56, reflecting rising operational costs and potential profitability challenges.
Member relationships remain strong in terms of Deposits and Loans per Member (DM & LM), but Borrowers to Members (BM) saw a slight decline to 6.04.
On the positive side, Cash and Short-Term Investments (CS) improved to 5.22, and Net Worth (NW) and Solvency (SE) remain robust.
Top Performing Credit Unions Recognized
Top Performing Credit Unions Recognized
Despite industry-wide challenges, several credit unions have demonstrated exceptional performance, achieving high HealthScores:
Moonlight Credit Union, Worthington, PA, achieved a HealthScore of 8.735.
Meridian Mississippi ANG Federal Credit Union, Meridian, MS, achieved a HealthScore of 8.559.
Cambridge Firefighters Federal credit Union, Cambridge, MA, achieved a HealthScore of 8.412.
These institutions exemplify resilience and strategic management, demonstrating that success is achievable even amidst industry-wide challenges.
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
Tom Glatt
Glatt Consulting Group, Inc.
(888) 217-5988
heathscore@glattconsulting.com
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