Liquidity & Balance Sheet
Loan-to-Share Ratio (Credit Unions)
Also known as Loan-to-Share Ratio
The loan-to-share ratio is a credit union's total loans divided by its total shares (member deposits) — the cooperative analog of a bank's loan-to-deposit ratio. It measures how much of the member deposit base is deployed into loans.
Formula
'Shares' are member deposits at a credit union (regular shares, share drafts, share certificates, money-market shares). The ratio shows lending intensity: how fully the credit union has lent out its members' savings.
Why it matters
A high loan-to-share ratio means most member savings are tied up in loans, leaving less on-hand liquidity to meet withdrawals or fund new lending. A very high ratio (above 100%) means loans exceed shares, so the credit union is funding the gap with borrowings or non-member sources that are more rate-sensitive and less stable than core member deposits.
How to interpret
Most credit unions run a loan-to-share ratio between 70% and 90%. Higher is not inherently bad — it reflects an active lender — but it trades yield for liquidity, so it should be read alongside the credit union's liquidity sources and the stability of its share base.
Thresholds
| Range | Label | Interpretation |
|---|---|---|
| < 85% | Comfortable | Ample member-share funding behind the loan book. |
| 85-100% | Active | Lending intensity is high; watch on-hand liquidity. |
| > 100% | Stretched | Loans exceed shares — funded with borrowings or non-member money. |
Worked example
Frequently asked
What is a good loan-to-share ratio for a credit union?
Most credit unions run between 70% and 90%. Below that suggests under-deployed deposits; above 100% means loans exceed member shares and the gap is funded with borrowings or non-member money.
Is the loan-to-share ratio the same as loan-to-deposit?
Yes — it is the credit-union version. 'Shares' are member deposits, so loan-to-share at a credit union plays the same role that loan-to-deposit plays at a bank.
Sources
- NCUA 5300 Call Report
See Loan-to-Share Ratio (Credit Unions) across 4,336 US banks
BankRegReports ranks every FDIC-insured institution by loan-to-share ratio (credit unions), refreshed each quarter as new FFIEC filings land.