Question

YEAR 2018 2017 2016 2015 2014 2013 COMMERCIAL BANKS BANKS Growth % 4717 -4.09% 4918 -3.79% 5112 -4.27% 5340 -4.76% 5607 -4.10% 5847 -3.71% 6072 -3.24% 6275 -3.74% 6519 -4.54% 6829 -3.50% 7077 -2.78% 7279 ASSETS (000s) $16,728,102,982.00 $16,217,881,358.00 $15,627,781,046.00 $14,893,214,772.00 $14,474,657,533.00 $13,673,056,712.00 $13,387,499,239.00 $12,650,468,093.00 $12,069,442,602.00 $11,826,781,868.00 $12,313,141,199.00 $11,181,900,787.00 Growth % 3.15% 3.78% 4.93% 2.89% 5.86% 2.13% 5.83% Deposits (000s) $12,898,467,068.00 $12,467,586,531.00 $11,982,312,148.00 $11,349,503,567.00 $10,938,732,842.00 $10,385,833,653.00 $10,012,097,628.00 $9,258,874,267.00 $8,517,722,866.00 $8,336,603,049.00 $8,085,709,986.00 $7,313,861,237.00 Deposits/Assets 77.11% 76.88% 76.67% 76.21% 75.57% 75.96% 74.79% 73.19% 70.57% 70.49% 65.67% 65.41% Equity (000s) $1,888,615,064.00 $1,824,950,466.00 $1,737,945,824.00 $1,675,818,834.00 $1,606,757,767.00 $1,518,720,502.00 $1,486,828,390.00 $1,403,801,650.00 $1,337,851,761.00 $1,288,433,453.00 $1,154,480,688.00 $1,143,507,906.00 Equity/Assets Net Income (000s) 11.29% $222,056,305.00 11.25% $151,492,098.00 11.12% $156,685,060.00 11.25% S151,896,097.00 11.10% $140,189,718.00 11.11% $143,110,234.00 11.11% $130,041,412.00 11.10% $110,182,982.00 11.08% $77,427,236.00 10.89% -$11,619,811.00 9.38% $15,262,023.00 10.23% $97,639,154.00 2012 4.81% 2011 2010 2009 2008 2007 2.05% -3.95% 10.12% YEAR 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 THRIFTS SAVINGS 691 754 801 845 903 966 1015 1084 1139 1183 1232 1255 Growth % -8.36% -5.87% -5.21% -6.42% -6.52% -4.83% -6.37% -4.83% -3.72% -3.98% -1.83% ASSETS (000s) $1,214,890,400.00 $1,197,528,393.00 $1,151,900,278.00 $1,074,447,339.00 $1,079,070,863.00 $1,057,733,803.00 $1,062,904,522.00 $1,240,876,663.00 $1,249,480,356.00 $1,259,995,821.00 $1,528,007,645.00 $1,852,033,584.00 Growth % 1.45% 3.96% 7.21% -0.43% 2.02% -0.49% -14.34% -0.69% -0.83% -17.54% -17.50% Deposits (000s) $967,743,272.00 $931,621,527.00 $912,251,387.00 $840,520,243.00 $825,270,694.00 $806,376,744.00 $805,379,084.00 $927,529,382.00 $905,285,036.00 $890,195,106.00 $950,006,855.00 $1,101,505,469.00 Deposits/Assets 79.66% 77.80% 79.20% 78.23% 76.48% 76.24% 75.77% 74.75% 72.45% 70.65% 62.17% 59.48% Equity (000s) $130,516,094.00 $128,741,925.00 $124,999,312.00 $118,519,746.00 $126,770,235.00 $124,252,448.00 $126,856,353.00 $147,005,498.00 $146,657,333.00 $135,609,271.00 $136,582,201.00 $203,856,776.00 Equity/Assets Net Income (000s) 10.74% $14,709,579.00 10.75% $12,599,706.00 10.85% $13,823,959.00 11.03% $11,542,528.00 11.75% $12,057,462.00 11.75% $11,201,870.00 11.93% $11,000,763.00 11.85% $8,229,340.00 11.74% $8,059,003.00 10.76% $1,655,588.00 8.94% -$10,761,931.00 11.01% $2,305,752.00 Growth % -3.55% -3.66% -3.92% -4.02% 4.29% YEAR 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007 Credit Unions CU# 5375 5573 5785 6021 6273 6554 6819 7094 7339 7554 7806 8101 ASSETS (000s) $1,453,400,000.00 $1,378,800,000.00 $1,292,500,000.00 $1,204,300,000.00 $1,122,100,000.00 $1,061,914,000.00 $1,021,775,000.00 $961,709,000.00 $914,475,000.00 $884,604,000.00 $811,067,000.00 $753,464,000.00 Growth % 5.41% 6.68% 7.32% 7.33% 5.67% 3.93% 6.25% 5.17% 3.38% 9.07% 7.65% -3.89% -3.88% -3.34% -2.85% -3.23% -3.64% Deposits (000s) $1,219,700,000.00 $1,159,500,000.00 $1,092,600,000.00 $1,016,000,000.00 $950,800,000.00 $910,087,000.00 $877,904,000.00 $827,410,000.00 $786,480,000.00 $752,667,000.00 $681,127,000.00 $632,339,000.00 Deposits/Assets 83.92% 84.09% 84.53% 84.36% 84.73% 85.70% 85.92% 86.04% 86.00% 85.09% 83.98% 83.92% Equity (000s) $164,300,000.00 $151,100,000.00 $140,800,000.00 $131,500,000.00 $123,000,000.00 $111,099,000.00 $106,435,000.00 $97,960,000.00 $91,178,000.00 $86,644,000.00 $84,666,000.00 $85,817,000.00 Equity/Assets Net Income (000s) 11.30% $13,000,000.00 10.96% $10,400,000.00 10.89% $9,500,000.00 10.92% $8,700,000.00 10.96% $8,700,000.00 10.46% $8,140,000.00 10.42% $8,461,000.00 10.19% $6,274,000.00 9.97% $4,589,000.00 9.79% $1,488,000.00 10.44% $400,000.00 11.39% $4,738,000.00

1. Looking at the chart showing the number of institutions and their assets, deposits, equity, and income and profitability data from 2007-2018 comment on the significant changes in each category for each institution.

Answer 1

Institution type	Commercial banks	Thrifts	Credit unions
Number	The number of commercial banks declining consistently. Most of the small banks are merging to form stronger ones.	The number of thrifts also in declining trend. The number of thrifts almost reduced to half.	There is a steady rate of reduction in number of credit unions which were reduced by 33% aprox.
Assets	There is a positive growth in total assets over the period , except for 2009 because of subprime crisis, though the growth rate is not steady.	Assets balance of the Thrifts has shown mostly negative growth for majority period which reversed recently.	Assets balance of the credit unions is growing positive over the period though the rate of growth is not consistent
Deposits	Deposits to assets ratio is increasing consistently which indicates steady inflow of the deposits.	Deposits to assets ratio is increasing and the rate is almost steady. The rising proportion signifies positive industry scenario.	There is no notable difference in the deposits flow and the proportion of the deposits is almost steady.
Equity	Equity to assets rate is growing constantly except during the 2008 crisis period, which can be interpreted as rising capital inflows	Equity to assets rate for thrifts is slightly reducing over the period conveying that owners' capital inflow is slightly reducing.	Equity to assets rate for Credit unions is steady except for a fluctuation during 2008 crisis. There is a slight increase for last year.
Net income	There is good growth in net income which is more than double from beginning of the period given. Net income for 2008 is negative because of 2008 crisis.	There is many folds rise in the net income of the thrifts even though their number is declining. Net income for 2008 is negative because of 2008 crisis.	There is more than three times rise in the net income for the credit unions during the period. Net income for 2008 is negative because of 2008 crisis.