Early year-end data show credit union loan growth for 2002 surpassing
last year's rate, while share growth for the year will come in slightly
below last year's strong pace.
These credit unions show share growth of 12.1% for 2002, below
last year's 14.7% rate, while loan growth reached 8.7% for the year,
well above the industry's 6.7% rate in 2001. However, it is important
to note that these 549 credit unions have generally outperformed
the rest of the industry throughout the year, so the overall industry
numbers will likely come in below these figures. In 2001, this group
grew shares 18.2% and loans 10.7%.
The data, submitted by credit unions participating in Callahan
& Associates' First Look program, is from 549 credit unions
with a combined $139.6 billion in assets, representing approximately
25% of industry assets. Credit unions contribute the data that make
up Callahan's First Look industry snapshot, which tracks credit
union trends weeks before final reports are available. The participating
credit unions have access to general industry trends as well as
individual credit union call reports. Early indicators like this
have provided accurate insight into the industry's final results
in past quarters, Callahan records show.
For the first time since the first quarter, share growth outpaced
loan growth. The participating credit unions grew shares an impressive
2.6% in the final quarter, while loans increased 2.3%. In the third
quarter, these same credit unions grew loans 2.6% with shares increasing
With another year of share growth outpacing loan growth, it was
important for credit unions to make a good yield on their investment
portfolio. Of the preliminary credit unions, the top five over $50
million in assets with the best yield on investments for 2002 are
listed in the table below. First Resource Federal Credit Union of
Michigan came in first with a 5.66% yield.
As an industry, credit unions continue to be financially sound.
The preliminary data show the net worth to assets ratio staying
steady at 10.0%. The delinquency ratio also remains stable at a
The slight pick up in share growth and the very low cost of funds
resulted in First Look credit unions' return on assets (ROA) declining
to 1.22% from 1.24% in the third quarter.
''The pick up in loan growth this year has allowed credit unions
to turn more of their deposits into higher paying loans instead
of lower paying investments,'' says Callahan Executive Vice
President Jay Johnson. ''With higher returns, strong asset quality,
and a solid capital base, credit unions are recording another stellar
Credit unions participating in First Look represent a very wide
range of asset sizes from Vestal Employees Credit Union in Missouri
with $151,844 in assets to Navy Federal Credit Union which now holds
over $17.5 billion in assets. Any credit union can participate in
Callahan's free First Look program every quarter by emailing their
5300Data-Charter#.XML file to firstname.lastname@example.org.