HealthScore Chart of the Week: Loan Participations

This week’s HealthScore Chart of the Week focuses on credit union loan participations, specifically looking at the HealthScores of those credit unions purchasing participations in the first quarter.

A little detail behind the chart…

There are approximately 514 credit unions that engaged in loan participations in the first quarter. Of these 514, a full 77% of them possess HealthScores greater than the industry average of 2.446. Of those with the largest participations, all have above-average health according to our HealthScore system. While there are more than a few credit unions with health less than the industry average – 117 to be exact – the majority appear to be quite healthy.

It will be interesting to see the impact recent NCUA changes to participation rules will have on the participation market and on the health of credit unions engaged in participations. There seems to be broad disagreement on the need for the rule that was passed. In any case, additional insight into the new participation loan rule is available via this CU times analysis as well as via the NCUA’s final rule document.

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? Schedule an appointment to discuss your scores. You may also want to learn more about our approach to credit union strategy consulting.

Data is as of 3/31/2013

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