Scorecard Series: Call Report Peer

New Call-to-action
     

Scorecard Series: Call Report Peer

 Our third scorecard takes the most recent quarter of call report data and breaks things down into peer groups, which are defined by these asset classes.

 PEER GROUP 

ASSETS

1

$2 million or less

2

$2 million to less than $10 million

3

$10 million to less than $50 million

4

$50 million to less than $100 million

5

$100 million to less than $500 million

6

$500 million or more

 These are peer groups are defined by the NCUA. We have six groups in total. The higher the peer group, the higher the asset class.

 

And here is our peer scorecard. It looks very similar to the trends scorecard from the previous blog entry in this series, however, this scorecard is by peer group, it does not show trends, and it’s only for the most recent quarter. If you look closely, all statistics listed in this scorecard on the left hand column are the exact same statistics found on the trends report. Again, for any questions as to how certain statistics are calculated, see the Call Report Statistics Descriptions document (Page 1, Page 2, Page 3). Let’s jump into each category.

 







callReportPeerBlog_1.pngHere we have the general information again. As you can see, there is no longer a growth column. We simply report the aggregate level and median for each statistic where applicable. The median column really shines in this scorecard because as a credit union, we could look at our peer group and get an idea of where we stand compared to the rest of the group. For instance, if we are a credit union that belongs to peer group one, and we have 200 members, then by comparing to the group median of 272, we know we are one of the smallest credit unions around. One interesting finding here is that as we increase in peer group, the median borrower to member ratio increases.

callReportPeerGeneralBlog_2.png

 And here we have loans. It’s not too surprising that as the peer group level increases, the aggregate and median for total loans increases. However, it is more interesting that as the peer group level increases, the yield on average loan for both aggregates and medians decreases.

callReportPeerLoansBlog_3.png




With shares, the top section shows that as the level of peer group increases, almost all the statistics increase for both aggregates and medians. However, peer groups one, two, and three show very similar total loans to total shares ratios at around 56% for both aggregates and medians.

 In the bottom section we are looking at the percent of total and rate. The rate is the median dividend rate for a share type for that peer group. Percent of total is the percentage of total shares made up of a particular share within each peer group. So almost 89% of all shares in peer group one are made up of regular shares, whereas only about 34% of all shares in peer group six are made up of regular shares.

 callReportPeerSharesBlog_4.png

With assets, all statistics increase for both aggregates and medians as the peer group level increases.

callReportPeerAssetsBlog_5.png



For delinquencies, an increase in peer group level shows an increase in aggregates and medians for total delinquent loans. But that’s definitely not surprising because we already know higher peer group levels have more loans, so we would expect more delinquencies. What’s more interesting is that an increase in peer group level also shows a decrease in the total delinquent loan to total loan ratio. So even though smaller credit unions have fewer loans, they are experiencing a higher concentration of delinquent loans on the aggregate level (and in terms of the median). The aggregate level of the delinquent loans to assets ratio decreases with an increase in peer group level. And the median does as well, except peer group five has a higher median than four.

callReportPeerDelinqBlog_6.png






And finally, we have charge-offs. Like delinquencies, we see an increase in aggregate and median charge-offs as the peer group level increases, which is completely expected. With bankruptcy charge-offs compared to all charge-offs, the median for the most part increases with peer groups, but the aggregate level seems to hover around 15% for every group except peer group one. And with net charge-offs divided by average loans, the aggregate level for all groups is about 0.13%. And the median is about 0.08% for all groups except peer group one.

callReportPeerChargeOffsBlog_7.png



That completes our look at our three new scorecards. A few things we plan on doing in the future is to create similar reports for non-credit union financial institutions, create a trending peer scorecard for each peer group, create a peer scorecard broken down by regions, and create a scorecard comparing peer groups by region and asset size. Ultimately, we at Visible Equity want to incorporate these scorecards into our software to allow for customization, a feature that would allow you to create your own scorecard that would display whichever statistics and peer/region categorizations that you want.











Keaton Baughan

Product Manager


COMMENTS