This week’s HealthScore Chart of the Week focuses on credit union assets, specifically looking at the comparison of individual credit union HealthScores to total assets.
We find this chart interesting for two reasons. For one thing, it highlights the wide asset gap that exists between the largest three credit unions and the remainder of the industry. It also shows that these large institutions are quite healthy relative to industry averages (recall that the industry average score for the same time period is 2.339).
Of course with the inclusion of such large credit unions it is difficult to gain proper perspective on the real industry distribution of asset sizes and HealthScores. To provide additional clarity we have included the chart below – which reflects only credit unions with assets $1B or less. While we now see score concentrations suggesting larger credit unions generally possess better health scores, there are a number of sizable credit unions with scores well below the scores of most other credit unions. Just as notable are the many small credit unions with scores well above most other credit unions.
Certainly size and scale matter, but other factors seem to have overwhelmed size/scale benefits for some credit unions just as other factors have allowed much smaller credit unions to overcome size limitations.
Comments and interpretations welcome. To share your thoughts, use the comments feature below.
Interested in learning more about where your credit union stands in relation to Glatt Consulting’s Credit Union Industry HealthScore? Let us know. You may also want to learn more about our approach to credit union strategy consulting.
Data is as of 12/31/2012