Early Credit Union Data Just Released from Callahan’s First
New preliminary third quarter data show credit union loan growth
for 2002 poised to outpace last year’s growth rate. The early
figures place loan growth at 6.3% Year to Date (YTD). With just
one quarter to go, loan growth for the industry can be expected
to top last year’s 6.7% growth.
The data, submitted by credit unions participating in Callahan
& Associates’ First Look program, is from a record 1,192
credit unions with combined assets of $180 billion, representing
approximately 33% of industry assets. Participating credit unions
contribute the data that make up Callahan’s First Look industry
snapshot that tracks credit union trends weeks before final reports
are available. Early indicators like this have provided good insight
into the industry’s final results in past quarters.
First Look credit unions’ share growth of 9.9% YTD also remains
strong, but appears headed to finish the year below last year’s
14.7% growth, the analysis indicates.
For the second straight quarter, however, loan growth has outpaced
share growth. Credit unions grew loans a solid 3.0% in the second
quarter, while shares increased 2.1%. The early data show this trend
continuing with loan growth for all First Look credit unions at
2.0% in the third quarter, and share growth at 1.5%.
A number of credit unions across the country have succeeded in
growing loans faster than shares this year. The top five credit
unions over $50 million in assets experiencing the largest spread
between loan growth and share growth year-to-date are listed in
the table below, led by Atascadero Credit Union of California.
Overall, credit unions this year continue to be financially sound.
The early data show the net worth to assets ratio slightly increasing
to 10.0% from 9.9%. The delinquency ratio remains low at 0.6%.
The stronger loan growth and the very low cost of funds resulted
in First Look credit unions’ return on assets (ROA) rising
to 1.22% through the third quarter from 1.17% in the second quarter.
“From the First Look data we can see that results remain
strong across the board,” says Callahan Executive Vice President
Jay Johnson. “Credit unions look on track for a solid fourth
quarter and yet another great year.”
Credit unions participating in First Look represent a wide range
of asset sizes from All Saints Credit Union in Missouri with $264,537
in assets to Navy Federal Credit Union with assets of almost $17
billion. Any credit union can participate in Callahan’s free
First Look program every quarter by emailing their 5300Data-Charter#.XML
files to email@example.com.
The First Look program was started in 1996.
Top 5 Credit Unions with largest spread
between loan growth and share growth