With all 9,570 credit union yearend reports now available, it is possible to look at complete 2003 results, quarter by quarter. In the final three months, credit unions eked only a .51% share increase, the slowest gain of any quarter. The 9.2% full year share growth helped to raise total credit union assets to $623.1 billion at December 31, 2003.
Loans in the final three months of 2003 increased 2.52% versus the third quarter growth of 3.78% as the mortgage refinancing boom finally began to play out. Mortgage originations dropped by 47 % or over $13.7 billion from the third quarter's volume which was driven largely by loans already in the pipeline.
The most significant falloff was in service revenue, which declined to $1.644 billion or almost $100 million less than the third quarter. As a result the industry's 4th quarter net income declined from $1.55 billion to $1.41 billion. The ROA for the final quarter of 90 basis points was the lowest of the year.
Total investments decreased by $5.6 billion as loan growth exceeded share inflows. Member growth of 180,000 was the slowest of any quarter of the year.
The chart below shows the quarter by quarter changes in key balance sheet and income statement categories. A full presentation of credit union results will be a part of the Trend Watch calls open to the credit union community on Wednesday March 3 at 12:00 EST and again on Thursday March 4, at 11:00 EST. For further information on these two calls, please click here.