DALLAS – Credit union CEOs aren’t flying high over election results, according to Southwest Corporate’s CU CEO Confidence Survey, taken the week immediately after the election. The index took its greatest plunge from one survey to the next, skidding 14.72 points to its lowest mark-10.50-since it began four years ago.
In the November Special Edition survey, CEOs were pessimistic across the board, also registering the lowest marks in survey history for credit union and for member financial conditions, both now and in six months. Most notable was the substantial decrease in expectations for credit union financial condition and for member financial condition six months from now, each dropping around 22 points. Anticipation for loan demand in six months dropped from the last survey by more than 20 points to zero.
Brian Turner, Southwest Corporate’s Director of Advisory Services, advised credit unions not to let the emotion of recent financial crises cause them to step away from lending or investment activities.
“Conventional fixed-rate real estate loans continue to demonstrate strong relative value without requiring a compromise in underwriting standards,” he said.
“Reasonable expectations for 2009 earnings should clearly be discussed with boards, taking into account the current environment but also recognizing that as the economy recovers in late 2009, confidence, outlook and earnings again will return.”