The credit union depicted in the report below is healthier than many, but still has issues to address. 6,275 of the 22,996 Loan households (over 27% of the Loan household base) have $500 or less in combined loans and represent only $627 thousand of a nearly $143 million portfolio. Chances are that further analysis of these households will reveal that a good many are marginal in other ways, and they could eventually be repriced in such a way as to at least recover the costs they incur.
Conversely, the households in the balance tiers above $5,000 drive loan balances at this credit union, with a critical mass of households at the $5,000 to $15,000 level and a critical mass of dollars at the $15,000+ levels. These are the households whose loyalty is critical to the credit union's survival. By identifying a profile of these households, we can prospect elsewhere in the household base and determine which are prospects for increased business, and which are the subsidized households.