Over the past 18 months, credit union investments have increased
over $64 billion to a total of $223 billion. In comparison, the
industry had grown total investments by only $45 billion over the
nine years prior.
While investment balances are at an all-time high, credit union
yield on investments hit an all-time low of 2.7% in June - a 234
basis point decrease since December 2001. Average yield on loans
also fell over this period, but not nearly at the rate of investment
yield, staying above 7%.
This environment has dramatically changed the industry's yield
on loan-to-yield on investment ratio, pushing it to 2.6x - levels
never seen before. From June 1995 through December 2001, this ratio
remained quite stable with a narrow range of 1.5-1.7x.