Casey Connelly

RECENT POSTS BY CASEY CONNELLY

By Casey Connelly | May 31, 2004

The number of credit unions decreased 88 to 9,488 in the first quarter of 2004. Those credit unions collectively added $17.7 billion in assets as the industry now holds $640.8 billion.

By Casey Connelly | May 17, 2004

An early look at the largest credit unions participating in Callahan’s First Look program reinforces the earnings pressure felt throughout the industry. Over half of the largest 20 participants earned less in the first quarter of 2004 than 2003. These credit unions, on average, were over $4 billion in assets and had almost $11 million in net income in the first quarter – enough to generate a healthy 1.06% return on average assets. Still, their net income was 17.1% lower than the first three months of 2003 where they had generated a collective ROA of 1.42%.

By Casey Connelly | May 10, 2004

As tax refunds and member savings help create deposit growth in the first three months of the year, credit unions must decide how they are going to appropriate those funds. So far in 2004, much of the savings not utilized to fund various loans, has been kept as cash or cash equivalents by the credit union. The 564 credit unions participating in the First Look program grew cash and cash equivalents 21.4% in the first three months of this year, accounting for over 90% of the 5.7% three-month growth credit unions saw in investments (including cash and cash equivalents). These 564 credit unions represent approximately 30% of the industry with $181 billion in assets.

 

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By Casey Connelly | May 3, 2004

Credit union loan growth continues to be driven by real estate business. Credit unions participating in Callahan's First Look program reported loan balance growth of 1.80% in the first three months of 2004, up from 1.67% during the same period in 2003.

By Casey Connelly | April 26, 2004

As expected, early reporting credit unions are seeing tighter margins and less service revenue leading to lower earnings. The 202 credit unions that have participated in Callahan & Associates’ First Look program report an ROA of 0.97% at the end of the first quarter, 22 basis points below their collective 1.19% ROA at the end of 2003.
These 202 credit unions total $104 billion in assets and represent approximately 16% of the credit union industry. The decline began at the end of 2003 as margins continued to tighten and credit unions were less successful in supplementing their revenue with a stream of service revenue. Credit union ROA for this sample was 1.00% in the last three months of 2003 - not far from the 0.97% they report for the first three months of 2004.

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