In the past
decade, fee and other operating income have increased fairly steadily
both as a percent of assets and as a percent of income, according
to Callahan's First Look Data program. The two categories of income
were 0.6 percent of assets at the end of 1990. By the end of 2000,
they had risen to 0.9 percent, and annualizing the First Quarter
2001 results shows that they may now have reached 1.0 percent of
assets for the first time. The attached graph shows that during
the decade fee and other operating income grew from six percent
of gross income to 12 percent.
Our recent research
here at Callahan's strongly implies that this change is not the
result of increased charges to members for bouncing checks. Rather
it is the result of the move to off-balance-sheet activities. Our
recent research has found $800 to $900 million in first mortgages
originated by credit unions that are then funded by a third party.
These transactions generate fees for credit unions that are paid
by the funding organization.
has also documented $25.9 billion in assets-under-management by
credit-union-owned investment services and there are billions of
dollars in insurance products purchased by members through their
credit union's CUSO or through another credit-union-controlled structure.
more about First Look data