Credit union shares grew almost 6% in the 1st quarter of 2003 as
members continued to rebalance their savings in this uncertain economic
climate. The data, from First Look credit unions representing approximately
23% of industry assets, also indicates that the excess of liquidity
has led credit unions to lower their dividend rates. Return on assets
increased to 1.25% from 1.07% for 2002.
Callahan & Associates' First Look Project is a free
service through CreditUnions.com where credit unions can access
preliminary industry trends as well as individual call reports.
So far, 436 credit unions with a combined $136.5 billion in assets
have submitted their reports. To participate, you simply need to
email your 5300 call report (5300Data-CharterNumber.XML) to firstname.lastname@example.org.
With shares flowing in and new loan generation unable to keep pace,
credit unions put their excess funds into investments, which rose
almost 15% in the 1st quarter alone. If the rest of the industry
is able to keep up with the growth rate, then total credit union
investments could jump almost $40-50 billion in the first quarter
to $230-240 billion.
Currently, over half of the credit unions with at least $1 billion
in assets are First Look participants. As of today, return on assets
for this billion-dollar peer group averages 1.38% with Navy Federal
Credit Union leading the way with a return of 1.83%. Navy FCU, the
nation's largest credit union, grew by almost $1 billion in the
first quarter, pushing total assets to $18.56 billion.