Data compiled by Callahan & Associates’ FirstLook program is showing credit unions closed out 2013 with a bang. More than 2,500 credit unions representing 50% of the industry’s assets are reporting fourth quarter data. For these FirstLook credit unions, lending is strong. Loan originations are up 6.6% over 2012’s record pace, and outstanding loans are up 8.8%. Consumer lending, which is up 12.6% from 2012, is leading the growth. Despite the activity in home refinancings in early 2013, rising interest rates have shifted the market toward purchase mortgages, and total refinancing volume is down 2.7% in 2013 versus 2012.
Fewer mortgage refinancings mean fewer sales to secondary market, and the amount of first mortgages sold is down 13.7% annually. Consequently, non-interest income from selling said mortgages is also down. However, fourth quarter’s 2.78% net interest margin is only two basis points below what the industry reported in September. And at 80 basis points for credit unions nationwide, return on assets is also in line with third quarter, although ROA is down six basis points from 2012.
NET INTEREST MARGIN
Data as of December 31 for FirstLook credit unions
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Source: Callahan & Associates’ Peer-to-Peer Analytics