In delinquent loans as a percentage of overall loans, credit unions measure below 2 percent, while California banks are close to 6 percent, and banks across the United States are near 9 percent.
In loans as a percentage of shares, U.S. credit unions lead with a 68 percent loan-to-share ratio, while U.S. banks are trailing at 50 percent. California credit unions and banks measure very closely, with credit unions at 62 percent and banks at 61 percent.
The comparison in net charge-offs as a percentage of average loans is more neutral. California banks are at 0.48 percent, with U.S. credit unions at 0.74 percent, California credit unions at 1 percent, and U.S. banks at 1.25 percent.
Trends for capital as a percentage of assets are mixed. California banks are higher than 12 percent. U.S. banks register at 11.55 percent, but on a downward trend. Credit unions are close behind, trending up at 11.25 percent for the nation and 11.64 percent for California.
Capital growth currently appears to favor banks, with U.S. and California banks growing at 10.41 and 20.2 percent, respectively. Credit union capital growth is at 9.49 percent in the United States and 6.14 percent in California. The difference might stem from banks having more channels to grow capital than credit unions.
This data indicates the economic environment tends to favor institutions focused on small business growth—and at the same time, credit unions continue to focus on advocacy efforts to raise the member business lending cap from 12.25 percent of assets to 27.5 percent. In February, bipartisan legislation to raise credit unions' member business lending cap was reintroduced in the House of Representatives.
Additionally, leaders from seven California credit unions were interviewed for a nerdwallet.com report titled Small Business Lending: Advice from the CEOs of Financial Institutions. To read the nerdwallet.com interviews with KeyPoint CU CEO Brad Canfield, Redwood CU CEO Brett Martinez, North Island CU CEO Stephen O'Connell, San Francisco FCU CEO Steven Stapp, Travis CU CEO Patsy Van Ouwerkerk, CoastHills FCU CEO Jeff York, and Meriwest CU Senior Vice President and Chief Credit Officer Mark Antonioli, click here.
TEENS ATTEND BITE OF REALITY updated
05/15/13 12:47 PM
Program Hosted by Patelco CU
Nearly 40 students from Roseville High School’s Advancement Via Individual Determination (AVID) program got a “bite of reality” May 8 when they attended an interactive financial education simulation designed to teach them how to manage money.
IMPROVE CHECK DEPOSIT PROCESSING updated
05/15/13 02:13 PM
Reasons to Use Teller Capture
Check deposits continue to be a significant part of a teller's daily duties, and in fact, account for 90 percent of transactions. Reducing the costs associated with the check deposit process can significantly add value to your credit union.
NATIONAL CU TAX ADVOCACY PLAN COMING updated
05/14/13 12:16 PM
Leagues, CUNA Prepare for Defense
As congressional legislators meet to consider bipartisan tax reform, the credit union not-for-profit tax status must be explained and defended in Congress, according to discussions between state leagues and the Credit Union National Association (CUNA) on Tuesday morning.
CUs CAN ENTER 'GEN Y' CONTEST updated
05/14/13 11:13 AM
NerdWallet.com Will Award Grants
NerdWallet.com—an online service offering objective, personalized, and comprehensive consumer financial information—is holding a Gen Y Credit Union Contest to encourage credit unions to come up with innovative, far-reaching plans to engage "Generation Y."