Talk of higher interest rates wasn't enough to boost creditunion CEOs' optimism in the third quarter of 2015, according toCatalyst Corporate Federal Credit Union's latest Credit Union CEOConfidence Survey.

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Catalyst's third quarter overall index came in at 28.89, down2.57 points from the previous quarter and the lowest it's been inat least four quarters. And although CEOs said they were moreoptimistic during the third quarter about their credit unions' current financial condition, they becameless optimistic in every one of the five other survey measures.Confidence in the anticipated financial condition of credit unions in six months dropped from41.91 in the second quarter to 40.41, for example, and confidencein expected loan demand fell 2.07 points to 30.44. Confidence in expected share deposit growth sank 4.47 points to18.08, according to Catalyst.

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But the largest quarterly declines related to how CEOs feltabout members. Optimism regarding their members' current financialcondition dipped 3.91 points to 23.18 quarter over quarter.Similarly, CEO expectations for members' financial condition in sixmonths dropped 3.56 points to 26.10.

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“The decline in confidence related to members' financialcondition surprises me,” Catalyst Strategic Solutions AdvisoryService Vice President Steven Houle said. “Household wealthcontinues to improve when considering home values and the stockmarket.”

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“I'd have to think this sentiment might be short-lived,especially after Friday's strong nonfarm payroll report, whichreported job gains of 271,000,” he added. “Generally speaking, Ithink credit unions will finish 2015 with very good earningsnumbers, and should turn in much the same next year.”

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The survey, which started in 2004, was sent to 2,107 creditunion CEOs in October. Catalyst said 274 responded, for a 13%response rate. Respondents used a scale ranging from -100 to +100to indicate their confidence in six areas: Current financialcondition of members, current financial condition of the creditunion, anticipated financial condition of members in six months,anticipated financial condition of credit unions in six months,anticipated loan demand at the credit union in six months andanticipated share deposit growth at the credit union in sixmonths.