2002 Loan Growth Set to Outpace 2001 Results

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.

 
 

Early Credit Union Data Just Released from Callahan’s First Look Program

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 5300@callahan.com. The First Look program was started in 1996.

Top 5 Credit Unions with largest spread between loan growth and share growth
 

 

 

Nov. 18, 2002


Comments

 
 
 
  • I'm really not sure what this table means. "Rank State" is confusing. Our CU grew 13.76% in loans through September, 02.Yet, it's not part of the program. We do participate in "first look." David Barton
    Anonymous