MADISON, Wis. – Credit unions continue to hold the largest share of their surplus funds in agency securities. According to the latest CUNA Mutual Group Trends Report, while surplus funds fell by nearly $10 billion in August reflecting both the decline in savings and the increase in loans, 39% of credit unions parked funds there as of August 2003. At $220 billion, surplus funds are 4.3% below the prior year level and up just 0.3% year-to-date. With approximately 46% of surplus funds maturing in one year or less, CU investment returns may benefit from the flattening of the yield curve due to the rise in short-term interest rates, according to the report. CUNA Economics & Statistics estimates 34% of surplus funds have a maturity of 1-3 years and 17% are held in 3-10 year investments, based on mid-year data. Both of these shares are up about four percentage points from mid-year 2003, reflecting a “yield from longer durations.”

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

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

  • Critical 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 and

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 and

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

Copyright © 2023 ALM Global, LLC. All Rights Reserved.