A Dive Into HealthScore “Risk” Buckets

Recently we posted about HealthScore distribution over the last ten years – namely how many credit unions fall into different HealthScore ranges. The next logical question to ask is, “what risk is there to credit unions given the current score breakdown?” In other words, what is the makeup of the credit unions in each of our score buckets? Here’s the answer…

Assets

Here are assets broken down by our HealthScore buckets:

0-2.993-4.995-6.997-10
Total Assets$149M$37B$762B$784B
Average Assets$7M$35M$219M$958M
Max Assets$37M$3B$41B$111B
Min Assets$2$42,744$20,392$481,944

Obviously the first thing that we noticed was that there is a credit union with a grand total of $2 in assets! Is that true, or a typo? Apparently it is true. Lee County Mosquito Control Credit Union exists, but it looks like it may be winding down based on their asset declines over 2019.

Beyond Lee County, whet else is notable? There is a $3B credit union in that 3-4.99 score bucket. That could be a real concern depending on their score breakdown and how their performance trends shape up over the coming quarters. Perhaps they will ultimately end us as a merger partner – but we’ll see. The credit union has been conserved meaning the regulator is running the show … to mixed results so far.

Other than that, the industry is fairly strong. The bulk of credit union assets are housed in credit unions with average-to-above average scores. This is comforting – especially for consumers looking for a safe haven.

Membership

How about membership? How many members are being served by above-average credit unions? Here is membership broken down by our HealthScore buckets:

0-2.993-4.995-6.997-10
Total Membersip31,6265,076,04562,854,01653,785,254
Average Membership1,5064,89018,10865,672
Max Membership6,568572,3132,465,3138,959,665
Min Membership11520110

It makes sense given the asset breakdown shown previously that the majority of members are in relationship with above-average and high-performing credit unions. It is interesting, though, to see that total members served by credit unions in the 5-6.99 score range is greater than the total served by credit unions in the 7-10 range.

On the low end, more than 31,000 people have memberships with credit unions scoring less than 2.99. To get a score that low means you have serious issues in a variety of areas. These members are likely not very active or engaged in the credit unions they own – which is unfortunate.

Employees

How many full-time employees are working for the credit unions in the various score buckets? Full-time employees broken down by score buckets are shown in the table below.

0-2.993-4.995-6.997-10
Total Employees7011,567163,484128,875
Average Employees31147157
Max Employees165177,12417,851
Min Employees0000

If I still worked for a credit union (as an employee) I would be glad to know that credit unions as employers are solid and healthy – and that my credit union was one of the above-average performers. Clearly the majority of credit union employees are in good hands from a safety and soundness standpoint.

I am curious about those 70 people that work for the credit unions living on the low-end. What do they think of their environment, the long-term prospects of their employer, the level of member engagement? We might need to dig into that for a future post. The conversations would likely be fascinating.

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Image by Rudy and Peter Skitterians from Pixabay

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