"Dear Board of Directors:
As we begin the New Year, federally insured credit unions appear to be turning the corner. Credit unions’ financial health continues to improve during this protracted economic recovery. Many key financial indicators are trending in the right direction.
Net income during the first nine months of 2011 exceeded net income for all of 2010. Deposits, loans, assets, and net worth all rose again during the third quarter. As a result, the aggregate net worth ratio continued to inch upward to 10.15%.
As an example!
Lending Trends
Further examination of recent lending trends reveals several areas of concern. New auto loans continued to decline, while riskier types of loans weighed more heavily on credit union books. Unsecured loans, non-federally guaranteed student loans, and first mortgages all increased for consecutive quarters.
Of particular concern: Growth in low-rate first mortgages continues to far exceed growth in overall loans. Credit unions holding high concentrations of long-term fixed-rate loans will be subject to negative margins when interest rates rise and short-term funding costs exceed income from fixed-rate mortgages.
Read the complete report analyzing these and other trends in credit unions for the first three quarters of 2011." **** Pages - Supervisory Focus for 2012:
'via Blog this'
“Celebrating 25 Years of Service: Unite, Ignite, and Empower” “We train and support volunteer leaders of credit unions serving first responders to run stronger, more effective institutions.” “Great things happen when credit unions serving first responders come together. Our face-to-face and on-line interaction is the platform where collaboration begins, and GREAT ideas are generated.”
Subscribe to:
Post Comments (Atom)
New IRS Auto Loan Reporting Rule Creates Major Compliance Challenge for Credit Unions
Credit unions that make auto loans need to begin preparing now for a significant new IRS reporting requirement that could create an especial...
-
ALEXANDRIA, Va. (September 23, 2026) – The National Credit Union Administration today released the September 2026 updat...
-
Credit unions that make auto loans need to begin preparing now for a significant new IRS reporting requirement that could create an especial... -
Fed Hikes Rates The Federal Reserve raised interest rates for the first time since 2023 yesterday, announc... -
"Let’s state the obvious. Every credit union would love to find more loans. The U.S. economy is not generating enough loan demand to fi...
-
Twist and Shout Rock 'n' roll is a form of popular music that originated in the American ...
-
Recent indicators suggest that economic activity has continued to expand at a solid pace. Since earlier in the year, labor market conditions... -
FIS Announces Rewards for Prepaid Cards : By David Morrison Credit unions which offer prepaid card through credit processor FIS will soon b...
-
IRVINE, Calif.–Rising rates may be expected to put a damper on the pace of rising home prices, but data through March shows that has yet t...
-
Credit unions make our communities stronger. We pioneered a better way to fund your charitable giving focus while remaining responsible and...
No comments:
Post a Comment
Please no profanity or political comments.
Note: Only a member of this blog may post a comment.