Small credit unions had an advantage in interest income, fees and provision expenses in the fourth quarter over those with more than $1 billion in assets, but small credit unions' high overhead burden kept their margins far below larger ones.
A CU Times analysis of NCUA data released March 4 showed the 4,832 small credit unions' annualized return on average assets was 0.59% for the three months ending Dec. 31, down from 0.66% in the third quarter and 0.60% in 2019's fourth quarter.
For the 301 medium-sized credit unions (assets of $1 billion to less than $4 billion), ROA was 0.83% in the fourth quarter, roughly on par with both 2020's third quarter and 2019's fourth quarter.
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