Nov. 4, 2002


  • I've always found it interesting that as an industry, we talk about loan-to-share ratios. There is as much difference between a credit union with high concentrations of fixed first mortgage loans compared to one with consumer loans as if one were completely investing in long-term bonds and one in short-term funds. Yet, I never see a distinction between the two. I wonder if it leads us to the wrong conclusions. I think the reality is that many credit unions have been booking more real estate loans this year. I always take the CUNA peer group information and have to compute consumer loan-to-shares (or assets) to determine our own peer group for lending. I always end up with a different group than just looking at loans-to-shares.
    Doug Ferraro Bellco Financial Services