First Look Data Reveals Shift to Short-Term Borrowings in 3rd Quarter

For the 831 credit unions now participating in First Look, loan growth remains strong while share growth has been minimal. Find out how these credit unions are adjusting to these circumstances.


In the 3rd quarter of 2004, First Look credit unions increased their total borrowings by just under $2 billion dollars from the 2nd quarter. During this same time period, borrowings with a maturity less than one year increased to 77.81% of all borrowings compared to just 48.16% last quarter.

“The sustained loan demand through the 3rd quarter and the rise in the loan-to-share ratio of 4.50% indicates a shift in borrowing strategies since share growth is diminishing and investment liquidity is tightening,” said Jay Johnson executive vice president of Callahan. “By borrowing funds from FHLB or a corporate credit union, a credit union can satisfy liquidity needs as well as address specific ALM issues.”

This data was compiled from 831 credit unions who participate in our First Look program. Through First Look, credit unions submit their call reports to Callahan & Associates and are able to get a glimpse of quarterly trends before the NCUA releases the data. Currently, First Look credit unions represent 31% of the industry’s assets.

The following chart shows a breakdown of borrowings by maturity for the 3rd quarter. These results differ greatly from the 2nd quarter, where 33.11% of all borrowings had a maturity greater than 3 years, compared to just 0.74% of all borrowings this quarter.




Nov. 22, 2004



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