Strong Member Growth, More Assets Found at CUs With MBL Programs

WASHINGTON – A number of characteristics set credit unions that have member business lending programs apart from those that don't. One of those is asset size. In 2005, the average size of a credit union offering MBLs was $243.5 million compared to $185 million for non-MBL program participants, according to data compiled by CUNA. Another distinction can be found in membership growth with MBL CUs growing 3.7% in 2005, versus non-MBL CUs at 1.7%. The loan to savings percentage is also higher at 84% for MBL CUs and 71.5% for non-MBL CUs. Looking at capital adequacy, MBL CUs had an average 10.73% net worth ratio compared to 11.72% for non-MBL CUs. The capital to assets range was somewhat closer with 11.08% for MBL CUs and 11.96% for non-MBL CUs. On the flip side, credit unions with MBL programs tended to have more bankruptcies with 121.5 in 2005, versus 87.9 for non-MBL CUs. Net chargeoffs to loans ran closer together with 0.52% for MBL CUs and 0.55% for non-MBL CUs.