Preliminary 2nd quarter data from Callahan & Associates' First Look program
shows the credit union industry growing loans at an amazing pace while at the
same time keeping an eye on expenses and operational efficiency.
Loans for the participating credit unions grew 4.4% in the 2nd quarter, nicely
outpacing 1st quarter's growth of 1.7%, as well as the 2.9% growth rate seen
in the 2nd quarter of 2003.
Amidst the tremendous loan growth, the credit union industry kept a close eye
on expenses. Total operating expenses for the group actually fell 1% from the
1st quarter figures, a dramatic turnaround emphasizing the industry's focus
on efficiency in today's low rate, low margin environment.
Helping credit union gain operational efficiencies will be an excellent area
of opportunity for industry vendors in the upcoming years as the financial services
industry becomes more and more competitive.