DALLAS - The confidence level among credit union executives continued to plummet in the first quarter, according to the quarterly survey of credit union CEOs by Southwest Corporate FCU.
The first quarter 2008 index registered the lowest confidence level yet in the survey’s four-year history, down 14.22 points from December 2007 to 20.05. The low mark sits at the bottom of a 19-point decline that began in July 2007.
Confidence levels were the lowest recorded in the four years of the survey in every area but one. The exception was CEOs’ expectation for deposit growth in six months, which almost doubled from 13.92 in December 2007 to 27.25 with this survey. Expectation for loan demand in six months dropped to 5.18 this quarter.
The pessimism registered in recent surveys over members’ financial conditions persisted. CEOs assessed members’ current financial condition at 5.71 points lower in April 2008 than in the December report. They were even more concerned about members’ financial condition six months from now.
Credit unions showed uncertainty about their own financial condition, as well. Credit unions’ current financial condition charted at 42.12 in the April index, down from 49.48 the previous quarter. The expectation six months from now also dropped more than 10 points to 35.36.
Survey responses numbered 222–the highest number of respondents since the survey’s inception–out of 829 CEOs polled, for a 27% response rate.
