X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

WASHINGTON – The scales have tipped favorably for credit union investment balances, which have increased to a record high of $223 billion. Callahan & Associates reports that an increase in investment balances from $159 billion to $223 billion over the past 18 months is pivotal because balances had only grown a paltry $45 billion between 1992 and 2001. “Overall, loan share and growth rates were a lot closer in the 1990s,” said John Marron, corporate associate at Callahan & Associates. “Balance between the two became a lot more in sync when shares started flooding in.” The news is not so good for credit union yield on investments, which hit an all-time low of 2.7% in June, a 234 basis point decrease since December 2001. Average yield on loans also fell during this period but not nearly at the rate of investment yield, which stayed above 7%, according to Callahan. Still, many credit unions are reaping encouraging yields on their investment portfolios, with more than 300 yielding over 4% on their investments by June 2003. Callahan hosted an audio conference on Oct. 30 with a number of credit union CFOs who discussed their investment strategies and ways to bolster yields in the midst of the existing low-rate environment. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

 

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.