Record First Look Participation Shows Continued Strong Share Growth in 2nd Quarter:

2nd quarter data from 865 credit unions show that shares grew at an average of 7.9% in the first half of 2002, while the cost of funds remained at 2.9%. Come check out the rest of the preliminary data!

 
 

This year, the First Look program has surpassed expectations with a record 865 participants representing $173.8 billion in assets or approximately 34% of industry assets. While the First Look program always attracts larger credit unions, this is Callahan's largest and most diverse populace ever with 573 credit unions under $50 million in assets having reported.

These 865 credit unions grew shares at an average of 7.9% in the first six months of 2002. While this growth is comparable to the 9.6% growth seen in the first six months of 2001, the results are vastly different from just 18 months ago when credit unions came off an entire year of share growth that was less than the first six months of both these years, as shares grew 6.7% in all of 2000.

Share growth continues to be led by short-term savings categories with regular shares and money market shares growing 12.9% and 22.0%, respectively, in the last six months among First Look participants.

"The nineties were a time of double-digit loan growth and single digit share growth as the stock market, and people's portfolios, grew rapidly," says Callahan Vice President, Jay Johnson. "With a volatile market people look towards credit unions for security and competitive savings rates."

Cost of funds remained steady versus first quarter results at 2.9%. This figure is down sharply from the 4.5% recorded through the first six months of 2001, and led to an astonishing 31.4% growth in year-to-date net income from June 2001 to June 2002. The rise in net income, resulting in an ROA of 1.2%, occurred despite flat total income growth caused by the change in the interest rate environment. Below is a chart of First Look industry data and key ratios.

 

 

 

Aug. 12, 2002


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