Among the fields NCUA added to the call report for 2002 was the
New Programs or Service Offerings. Defined as a "program implemented
since the previous filing or with a planned implementation within
the next six months," we can now gauge which credit unions
are taking initiative to increase their performance or better serve
their members through new services. Half of the new service categories
are lending focused, and many of the credit unions that have reported
these service implementations are already seeing the benefits of
their new programs.
Twelve credit unions reported the implementation, or planned implementation,
of at least five new lending services. These twelve credit unions'
combined loan to share ratio is a slightly lower than average 67.4%.
It does not appear that this ratio will remain below average for
very long however, as their 3.4% average first quarter loan growth
is nearly three times the industry's average of 1.2% for all credit
unions over $50 million in assets. It appears that all of these
loans are having a positive effect on their overall performance
as well; these twelve credit unions returned 1.37% of their average
assets at first quarter's end, compared to an industry average of
These new loan services vary from the broad implementation of an
entire loan type, like real estate loans, to the addition of a new
service catalyzing a loan that's already in existence, like indirect
lending. While these new services provide new opportunities for
both the credit union and their members, it doesn't seem to be taking
a toll on their budget as these credit unions' average operating
expense to average asset ratio is only 2.5%, six-tenths of a percentage
point below the industry average.