December 13, 2011

NAFCU announces Cost of Funds Report

NAFCU is now offering members a quarterly cost of funds report that will help credit unions manage their expenses and make comparisons with peers according to asset-size.

NAFCU's Cost of Funds Report aggregates data from NCUA's quarterly call report and breaks down the numbers according to state, region and peer group. The report will be available every quarter following the release of NCUA's call report.

In making the announcement about the new service, NAFCU President Fred Becker said the cost of funds is "one thing that credit unions can control and doing so allows them to offer their members better rates and services."

According to NCUA's third-quarter data, the aggregate cost of funds (as a percentage of average total assets) for federally insured credit unions is 0.94 percent, annualized, down from the 0.96 percent level reported in June. That compares with a 0.75 percent level for FDIC-insured institutions in the third quarter.

NAFCU Chief Economist Tun Wai noted that credit unions have a higher cost of funds because they tend to pass along a higher savings rate to their members.

NAFCU's Cost of Funds Report will be available for NAFCU members at The web page will contain a frequently asked question section.