Loan demand was strong last year. Deposits were elusive. But that’s not news to you. That was the overall story for most credit unions in 2023.
For more than 10 years, we have collected and compiled quarterly call report data from our clients to look for trends and anticipate strategic shifts needed to remain competitive. Reviewing the data for last year, I’m not sure I could be more proud of what they’ve accomplished for their credit unions and their members.
Here is what I found:
1. Loan demand was strong in 2023, averaging 8.86% for all YMC clients. That was down from 16.09% growth in 2022. With liquidity tightening and loan-to-share ratios on the rise, loan demand didn’t decrease in 2023; however, the ability to lend did. One positive trend among several clients was decreasing dependence on indirect lending and increasing focus on serving ideal members. That drove share-of-wallet up as well as yield on loans.
2. Our top five credit unions for loan growth ranged from 14.5% all the way up to 37.19%. The commonality among these five was their risk appetite. To ensure they manage risk appropriately, some of those credit unions work with TCT Risk to maintain safety barriers and ensure proper pricing for their loan portfolios.
3. Membership growth in 2023 was more robust than in 2022. Each quarter saw membership increase across all our clients, with Q4 being the highlight of the year. Our top five credit unions for membership growth ranged from 4.29% to more than 17%. These five diligently focused on educating and engaging with their respective ideal member.
4. Q4 2023 experienced the 11th straight increase in net worth among our credit unions as they continue to rebuild their strength after the COVID-19 crisis.
Overall, 2023 was a spectacular year for Your Marketing Co. clients when it came to growth. Despite liquidity challenges, our clients were able to continue lending and serving their members well. Adjustments in our digital strategy and six-figure investments in technology upgrades and new software allowed us to gain deeper perspectives on our clients’ ideal members and reach them more effectively. We fulfilled our mission to help credit unions avoid unnecessary mergers by educating, engaging, and retaining the next generation of credit union members, and that remains our focus in 2024.
Is your credit union ready to ace 2024? Contact Bo at Your Marketing Co. today!