COSTA MESA, Calif.—A new study shows that smaller community banks and credit unions are losing ground to larger institutions and that large credit unions are outperforming community banks.
The findings are consistent with reporting done by CUToday.info on an ongoing basis, and with analysis released each month by CUNA and CUNA Mutual.
The report by Experian noted that credit unions with more than $1 billion in assets had faster deposit and loan growth rates than community banks.
The median deposit growth rate for larger credit unions was 8.77% versus 4.06% for community banks. Median loan growth was 12.23% for large credit unions versus 5.62% for community banks, reported Keith Leggett, the former senior vice president and senior economist at the ABA, in his analysis.
“However, large credit unions are less efficient and less profitable than community banks,” added Leggett about the study’s findings.