Twice each year, the Federation's Community Development Investment Program conducts analysis on community development credit unions (CDCUs). Our financial trends reports compare CDCU performance with that of all federally insured credit unions (FICUs). For past years we provide the full-year report.
Most Recent Financial Trends Report
Low-Income Communities and the Great Recession: Financial Trends in Community Development Credit Unions: January - June 2010. This report for the period through June 30, 2010 notes three forces shaping the credit union movement in general: unabated recession; redoubled regulatory pressure and regulatory fees charged to credit unions; and positive media coverage urging consumers to “move your money” from the large banks. “Resilience amid stress” best captures the condition of CDCUs. By several indicators, CDCU growth outpaced that of the credit union industry at large. CDCU assets increased at a higher rate than the rest of the credit union industry; CDCU loan portfolios increased modestly, while the overall credit industry portfolio declined, and the collective Return on Assets was virtually the same for CDCUs as for all federally insured credit unions. However, economic stress did exact a heavy toll, as the typical CDCU was marginally unprofitable, due in part to the deposit insurance charges of 22 basis points imposed by the National Credit Union Administration (NCUA). Thirteen CDCUs were either merged or liquidated, a higher proportion than the overall credit union industry. Mitigating this trend, four of these institutions were merged into other CDCUs, thus ensuring continued service to low-income communities.
Previous Financial Trends Reports