PLANO, Texas – Credit union executives continued to wax more positively with the quarterly CEO Confidence Survey conducted by Catalyst Corporate FCU coming in at a nearly three-year high.
The overall confidence index rose to 28.36 at the end of the first quarter, up from 26.81 for the fourth quarter of 2011, and the highest since it hit 29.01 for the second quarter of 2009.
The index reached its highest level, 46.79, in 2004 shortly after it was begun, and was at 41.05 for the first quarter of 2007, before plunging to a low of just 7.90 for the first quarter of 2009—closely tracking the nation’s economic conditions. Indeed, that rise in the latest confidence indicator comes as 2012 is shaping up to be one of the best years ever for credit unions.
For the first quarter of 2012 CEO confidence in their own credit unions’ financial condition—now and six months into the future—declined slightly by 3.23 and 1.28, respectively.
Although survey participants seemed somewhat uneasy about their own institutions’ condition, many appeared more positive regarding their members’ finances. CEOs rated “members’ current financial condition” four points higher and “members’ financial condition in six months” slightly higher than the marks recorded in the fourth quarter 2011 survey.
CEOs also indicated that they anticipate greater loan demand and share growth in six months.
“The credit union industry's projected first quarter 2012 loans-to-assets ratio has fallen to 57.2% from first quarter 2011’s ratio of 59.8%, but initial estimates for first quarter 2012 generally show economic improvement over first quarter 2011,” said Brian Turner, Strategic Solution director and chief strategist for the $4 billion corporate. "If the nation’s employment picture continues to improve, consumer spending—and member financing of large purchases—should gain traction.”
Begun in 2004, Catalyst Corporate’s quarterly survey measures CEO confidence in six key areas: current financial condition of members; current financial condition of the credit union; anticipated financial condition of members in six months; anticipated financial condition of the credit union in six months; anticipated loan demand at the credit union in six months; and anticipated share deposit growth at the credit union in six months.
Questionnaires for the most recent survey were sent to 1,344 CEOs of Catalyst Corporate and WesCorp member credit unions in April. Responses numbered 278 for a response rate of 20.7%.
