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 Q2 2013 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.
Most of the loan growth continues to reside in the industry's largest peer group, $500 million or more in total assets. "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," noted analyst Brian Turner. "This indicates that the remaining 93% of the CUs collectively experienced a 6% decline in loans-mostly from institutions (below) $150 million. The good news is that the rate of decline is half the rate experienced during the first quarter of 2013 for these CUs."
The overall CU CEO Confidence Index in Catalyst's survey remained virtually unchanged for the second quarter in a row, increasing less than one-fourth of a point over last quarter. Other results show a 2.7-point increase in CEOs' confidence in members' future financial condition (in six months) and a 2.6-point decrease in confidence for their own CU's future financial condition (in six months).
