[Washington, D.C.] – Callahan & Associates is thrilled to announce the release of year-end 2023 performance data, a month ahead of the NCUA’s release. This data is ready and available for customized analysis in Callahan’s Peer Suite software and will be the focal point of our year-end Trendwatch webinar on February 15th at 2 p.m. ET.
As the new year gains momentum, a full analysis of the industry’s performance in 2023 provides an updated foundation on which to reset and look ahead as we prepare to embrace the challenges and opportunities of 2024. Three key highlights include:
1. Liquidity Takes Center Stage:
• Liquidity emerged as a prevailing industry theme in 2023 as Americans struggled to save amidst rising costs of living.
• The collective credit union loan-to-share ratio stands at 85.1%, up 3.8 percentage points year-over-year.
• Credit unions sought additional liquidity through share certificate promotions and borrowing. While these funding sources are costly, most are short-term (<1 year).
2. Fewer New Members, But Deeper Relationships:
• Membership totals are projected to exceed 140.7 million – a record for the industry – but growth is slowing.
• Total membership expanded by only 0.4% quarterly and 3.0% annually, the slowest growth since 2013.
• This slowdown is partially influenced by many credit unions pulling away from indirect lending channels in the face of tight liquidity.
• Average member relationships still increased, highlighting how existing members are finding value in their credit union relationships.
3. Managing Delinquency Concerns:
• Total delinquency reached 0.83% across the industry at year-end, a 22-basis point yearover-year increase driven primarily by consumer loans.
• While the numbers have not reached worrisome levels, credit unions continue to increase provision expenses, indicating preparation for more repayment delays in 2024.
Want to learn more?
Callahan & Associates is proud to host our flagship Trendwatch webinar on Thursday, February 15th at
2 p.m. ET. This can’t-miss event – free to all registrants – will review both the crucial trends that defined 2023 for the industry, as well as those that are set to shape the trajectory of the year ahead.
The hour-long presentation will feature comprehensive analysis and expert discussion on key findings derived from Callahan’s early data. This quarter, Callahan will also include selected 20-year trends, giving viewers context on today’s performance in comparison to notable economic windows from this millennium.
Trendwatch promises to be an invaluable resource for credit union professionals looking for strategic insight into navigating the evolving landscape.
To tune into this exclusive event, please register here.
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About Callahan & Associates
For more than 35 years, Callahan & Associates has helped credit unions thrive. More than 4,000 credit unions and industry suppliers rely on us for the latest data, actionable insights, and benchmarking tools to develop their unique competitive advantages and achieve their strategic goals. Our 35-year history has enabled us to build an unparalleled knowledge transfer consortium which connects the industry’s best minds. To join Callahan’s network, please visit www.callahan.com.
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