Shares Flooding in as First Look Credit Unions Post Solid ROA

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.

 
 

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 5300@callahan.com.

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.

 

 

 

April 28, 2003


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