MADISON, Wis. — Outright declines in credit union capital in February — and over the past year — led to a decline in the capital-to-asset ratio, which now stands at 10.2%, according to a recent report by CUNA Mutual Group.
Also, the loan-to-share ratio slipped to 79.9% in February as seasonal deposit inflows outpaced loan growth. The loan delinquency rate — 1.487% — is 53 basis points above February 2008, but increases appear to be moderating.
There were more than 8,000 CUs at the end of February reflecting a net decline of 322 institutions over the past year, and 67 year-to-date. Total assets grew $64 billion-or 8%-over the past year. Deposits are up 4.4% YTD, with the vast majority flowing into highly liquid-and lower cost-instruments.
Annual loan growth remained below 7%, as real estate loan growth slowed and vehicle lending improved, CUNA Mutual also reported. (See related graphics at right.)
At the same time CUNA Mutual released its report, Southwest Corporate FCU published its quarterly CU CEO confidence survey, which found that CEOs' confidence continues to decrease in the face of ongoing economic trouble. Southwest Corporate FCU's quarterly survey showed the confidence plummeting more in April from November's depths-the lowest in the almost five years that Southwest has conducted the survey.
The overall CEO confidence index declined in April to 7.9 — from a low of 10.5 in November, according to the survey. According to the corporate, CUs' current financial condition index fell to a five-year-low of 20.85, from 34.18 in November; members' current financial condition continues to fall further to negative 5.37, from negative 2.04 in November.
