Credit Union Community Continues Streak Of Year-Over-Year HealthScore Gains

Wilmington, NC (September 17, 2019) – Credit union strategy consulting firm Glatt Consulting Group, Inc. announced today that the Credit Union Industry HealthScore, a composite score measuring the health and performance of US-based credit unions, extended its streak of posting year-over-year increases for the 22nd consecutive quarter with a score of 6.006. The current HealthScore, calculated using 2nd quarter 2019 data, represents a 1.25% year-over-year score improvement. Credit unions performed better in 13 of 17 HealthScore categories. Despite the strength of the overall HealthScore, the continuing decline in scores for both Loan Growth and Membership Growth present challenges that may extend to other categories in the future.  

The Credit Union Industry HealthScore measures overall credit union health, which is calculated by scoring/grading credit union performance across 17 different key ratios. Grading is based on a 10-point scale, with 0 reflecting poor performance and 10 reflecting exceptional performance. The Credit Union Industry HealthScore has been calculated and published by Glatt Consulting since 2009.

Driving Score Growth

Credit unions continued their unprecedented run of year-over-year performance improvement. Industry HealthScores have now improved year-over-year for 22 straight quarters, with 13 of 17 of the score components showing positive gains. Some notable score drivers include Return on Assets, Efficiency, Asset Growth, and Cash & Short-Term Investments, which posted year-over-year growth for the first time in two years. It will be interesting to see how the Cash & Short-Term Investments component performs in the coming quarters with the flattening yield-curve environment that currently exists.

Q2 Observations

Loan Growth and Membership Growth once again experienced year-over-year weakness with scores down 20.95% and 7.36% respectively versus Q2 2018. Continued weakness in these two components would likely result in the eventual declines of other components such as Income and Efficiency. The continued strength in Loans Per Member and Borrowings Per Member could help insulate credit unions from the effects of declines in Loan and Membership Growth in the short-term. However, any prolonged weaknesses in these two membership components would eventually present a myriad of operational challenges.  

Top Performers

The industry’s highest scoring credit union in the 2nd quarter, with a score of 9.12, was Churchill County Federal Credit Union based in Fallon, Nevada ( The credit union holds assets of $51M and serves approximately 2,800 members. The credit union regains the top spot in the 2nd quarter after having the highest HealthScore for both the 3rd and 4th quarters of 2018. Keep up the great work!

Once again, Eastman Credit Union based in Kingsport, Tennessee ( is the top-scoring credit union with assets over $1B with a Q2 score of 8.53, followed closely by Redwood Credit Union based in Santa Rosa, California with a score of 8.5. These two credit unions are perennial top performers who serve 232,747 and 265,237 members respectively.

Summary HealthScore Data

With regard to score trends, 13 of the 17 HealthScore components saw year-over-year score gains. They are:

(1) Net Worth: Up 1.88%
(2) Solvency Evaluation: Up 2.67%
(3) Return on Average Assets: Up 13.54%
(4) Efficiency: Up 7.12%
(5) Delinquent Loans to Total Loans: Up 1.51%
(6) Net Charge-Offs to Average Loans: Up 1.74%
(7) Texas: Up 0.20%
(8) Cash and Short-Term Investments to Assets: Up 1.92%
(9) Loans to Assets: Up 4.74%
(10) Deposits Per Member: Up 1.64%
(11) Loans Per Member: Up 4.25%
(12) Borrowers Per Members: Up 2.28%
(13) Asset Growth: Up 2.21%

Components that saw a year-over-year decline in score include:

(1) Operating Expenses to Average Assets: Down 3.95%
(2) Regular Shares to Total Shares and Borrowings: Down 1.46%
(3) Loan Growth: Down 20.95%
(4) Membership Growth: Down 7.36%

A HealthScore data report, including the top 20 credit unions by HealthScore, is attached to this release. We’re happy to serve as a resource on articles related to overarching industry performance, and we welcome your use of the trend material, properly credited to Glatt Consulting. If you have questions about this quarter’s report or CU industry trends overall, contact me at or (888) 217-5988, ext. 802.

About Glatt Consulting Group

Glatt Consulting Group, Inc. is a credit union consulting company based in Wilmington, NC. Founded in 2006, Glatt Consulting specializes in aiding credit unions in areas including strategy, organizational structure, governance, and leadership development.


Image by Gerd Altmann from Pixabay

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