America's 9,727 credit unions continued to post strong results
in the second quarter of 2003 - a quarter made particularly challenging
by interest rate volatility across the yield curve. Total credit
union assets rose 11.8% over the twelve-month period ending June
30 to reach $612.2 billion. Membership has expanded to 83.4 million,
but the numbers reveal that credit union growth is being driven
by stronger member relationships, not membership expansion.
Strong, Balanced Share Growth
Shares increased to $532.6 billion with both short and long term
shares balances rising at a double-digit pace over the past year.
Share growth during the quarter followed the seasonal pattern of
slowing from the first quarter's pace, but the 2.3% growth rate
equaled that of second quarter 2002.
The 11.3% share growth rate over the past 12 months exceeds the
2.9% membership growth rate by nearly four times, indicating that
growth is coming primarily from members deepening their credit union
relationships rather than funds from new members.
While money market and regular shares have led the growth, accounting
for $36.9 billion of the $54.1 billion in new shares added to the
credit union balance sheet over the past year, IRA deposits rose
11.3% over the same period.