PLANO, Texas — Credit union chief executives' confidence continues to rise, according to a new survey.
The Credit Union CEO Confidence Index, released by Catalyst Corporate Federal Credit Union, saw its third consecutive quarterly increase in the second quarter, hitting 32.94, compared with 30.32 in the first quarter.
Chiefly, CU CEOs continue to express optimism that conditions will improve over the next six months, with 45.54% of respondents feeling that way, compared with 39.16% in the first quarter.
Chief executives' assessments of their CU's condition also grew to 37.61%, from 34.78%.
Chief executives aren't expecting much change in loan demand, compared with the last quarter, and expectations of share deposit growth saw a decline of about one percentage point.
"Despite stagnant wage growth, CUs can expect share growth to continue, albeit probably at a slightly slower pace," Brian Turner, director and chief strategist at Catalyst Strategic Solutions, said in a statement. "This should help sustain manageable liquidity profiles, an important requirement for credit unions to navigate the transition into a potential new rate cycle in 2016."
But Turner also noted that CUs of $500 million or more continue to see the lion's share of growth, while CUs less than $500 million "are collectively experiencing a 12% decline."
"I share the optimism of the survey results. I am confident about my credit union's financial condition," Mike Murphy, chief executive of $143 million Holyoke (Mass.) Credit Union in Holyoke, said in a statement.
"Credit losses are low, and real estate values are increasing modestly. Loan demand is up, with the exception of mortgage refinance activity, and the cost of funds is stable," Murphy said.
"Improvements in employment prospects are sure to benefit my membership," he said.
Catalyst has been issuing these surveys for more than a decade. The index hasn't reached the highs of when it debuted in 2004, but confidence has recovered significantly since bottoming out at 7.90 in the first quarter of 2009.
