ARLINGTON, Va. — While credit unions' reliance on noninterest income is growing, it is still nowhere near the banks.
Credit unions have increased their noninterest income from $3.6 billion in 1999, or 11.17% of total income, to $8.3 billion or 20.10% for 2005, NAFCU Senior Economist Jeff Taylor said after analyzing NCUA Call Report data. He also pointed out that FDIC data showed banks with $154.7 billion in noninterest income in 1999, comprising 25.96% of income, and $222.0 billion in noninterest income for 2005 at 29.78% of total income. "The thing is here the relative size is so much larger," Taylor emphasized.
He continued, "It's definitely become a more important piece of the income." The thing credit unions, and banks for that matter, need to keep in mind is not to become too dependent on noninterest income.
Recommended For You
The primary make up of credit unions' noninterest income has been mortgage origination fees, which are expected to slow with the market, and bounce protection, which is gaining momentum, according to Taylor. As the yield curve begins to correct itself as expected, credit unions should be able to look less to fees and other noninterest venues for income. –[email protected]
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
