DALLAS — Low loan demand coupled with a housing downturn and the subprime mortgage fallout has shaken the confidence of some credit union CEOs of their financial institution's performance and members' financial status.

According to Southwest Corporate Federal Credit Union's September 2007 CU CEO Confidence Index, credit union CEOs are less confident than three months ago about their institutions' current financial performance, and show even less certainty over theirs and their members' financial status for the remainder of the year.

The index revealed that CEO assessment of “credit unions' current financial condition” inched down from 58.75 in July to 57.46 in September. CEOs' perspective of their “credit union's financial condition” six months from now dropped from 61.25 in the July survey to 60.82. “Members' current financial condition” slipped from 31.88 in July to 23.88 in July.

“With all the attention lately from the housing slowdown, subprime mortgages and low loan demand, it would be reasonable to expect some apprehension from credit unions, particularly with CEOs' concerns pertaining to their members' present financial condition, said Brian Turner, manager of Southwest Corporate's Investment Advisory Service. “Thankfully, we continue to have a very strong labor market, and overall wages have remained at relatively strong levels.”