PLANO, Texas Credit union CEOs are entering September with heightened expectations for the lending performance of their credit union.
In Catalyst Corporate FCU’s most recent CU CEO Confidence Survey it found responses during the second quarter of this year represent a jump of 4.2 points over the first quarter report and a year-over-year “confidence surge” regarding lending of almost 13 points. The findings come as new data released by NCUA show credit union lending increasing during the first half of 2013.
“During the first half of 2013, consumer sentiment improved just enough to see overall annualized loan growth increase to about 4%, aided by a sizeable increase in auto sales during the first quarter,” said Brian Turner, Catalyst Strategic Solutions director and chief strategist. “This helped to push the industry’s vehicle loan growth upward to about 9%, and mortgage loans increased 4% during the same timeframe. Both increases are welcome improvements over the doldrums of the past three years.”
Most of the loan growth continues to reside in the industry’s largest peer group, $500 million or more in total assets, Turner said. “This group, which represents about 94% of the industry’s assets, but less than 7% of the number of credit unions, experienced a 9% increase in loans. This indicates that the remaining 93% of the credit unions collectively experienced a 6% decline in loans mostly from institutions with less than $150 million in assets. The good news is that the rate of decline is half the rate experienced during the first quarter of 2013 for these credit unions.”
The overall CU CEO Confidence Index in Catalyst Corporate’s survey remained virtually unchanged for the second quarter in a row, increasing less than 1/4 point over last quarter. Other survey results show a 2.7-point increase in CEOs’ confidence in their members’ future financial condition (in six months) and a 2.6-point decrease in confidence for their own credit union’s future financial condition (in six months). Expectations for share deposit growth fell for the second consecutive quarter by about two points.
