Preliminary Data Shows Credit Unions with Highest Loan-to-Share Ratio Since December 2001

Data from Callahan's First Look program shows credit union's loan-to-share ratio hitting 74.6%, its highest levels in 2 1/2 years. Mortgage and auto lending helped boost loans for the participating credit unions 4.4%, while shares grew at a much slower rate of 2.0%.

 
 


An early look at mid-year data shows credit unions generating great loan volume while keeping expenses under control and improving efficiency.

The data, from credit unions participating in Callahan’s First Look program, show loans growing 4.4% in the 2nd quarter of 2004 versus 2.9% in the 2nd quarter of 2003. In an impressive display of efficiency in the 2nd quarter, the First Look participants actually decreased their operating expenses by 1%, helping boost their collective ROA from 0.99% to 1.07%.

Excellent loan growth has helped the industry get back on track by replacing low yielding investments with much higher yielding real estate and auto loans. Mortgage loans increased 5.6% in the 2nd quarter while auto loans grew by 3.5%, helping push the participants’ loan-to-share ratio up to 74.6%, its highest level since December 2001.

In the First Look group, we found many credit unions with extraordinary loan growth results for the 2nd quarter. Below is a list of the top 10 credit unions over $50 million in assets in loan growth for the quarter. Whereas many credit unions like Silver State Schools built up their loan portfolio through real estate loans, some like Metro Credit Union and March Community Credit Union took advantage of a strong auto sales environment to raise balances.

 

 

 

Aug. 9, 2004


Comments

 
 
 
  • It seems like all of your articles are just to promote one product or another for your company of which do not include anything for credit unions under $50 Million in assets.
    Anonymous