CU CEOs Expect Economic Climate To Weaken, According Confidence Survey

DALLAS - Credit union CEOs are reasonably upbeat about their institutions' current financial performance, but show less certainty over theirs and their members' financial status for the remainder of the year, according to Southwest Corporate FCU's July CU CEO Confidence Index.

The confidence index measures credit union CEOs' feelings on six key issues: CU's current financial condition, members' current financial condition, CU's financial condition six months from now, members' financial condition six months from now, loan demand in six months, share deposit growth in six months. CEO assessment of CUs' current financial condition was higher than last quarter, inching up from 57.55 in April to 58.75 in July-the only metric with a positive change. CEOs' perspective of their CU's financial condition six months from now dropped from 63.28 in April to 61.25.

"Even though the index suggests CEOs have a rosy financial outlook for their institutions, that optimism is somewhat tempered when it comes to their outlook for their membership. One might turn to recent reports from the housing market noting an upswing in delinquencies, foreclosures and defaults as principal causes of concern," said Southwest Corporate's Brian Turner. "However, apparently most feel their credit union is adequately insulated from any adverse exposure." (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com