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.