CEO confidence in their members’ current and future financial condition increased by 4.13 points and 1.17 points, respectively, from the fourth quarter of 2012. During this same period, CEO confidence in their own institution’s current financial condition decreased by 1.99 points, while confidence in their future financial condition dropped by .18 points.
Brian Turner, director and chief strategist of Catalyst Strategic Solutions, attributes the perception of an improving financial environment for members to increased employment, low interest rates, and virtually no inflation.
On the other hand, CEOs' lack of confidence in the current and future financial health of their institutions are driven by tight marginal spreads between asset yields and the cost of funds that continue to challenge net interest margins.
Only 31 percent of credit unions experienced loan growth in 2012. "That means the remaining 69 percent have elevated surplus cash and a greater reliance on investment portfolio income to replicate revenue streams—a difficult task to accomplish in this environment," Turner said. "With an outlook that reflects a continuation of the low rate environment for two to three more years, CEOs don’t see these challenges for their institutions going away anytime soon.”
CU LEADER AND VISIONARY PASSES updated
05/21/13 10:51 AM
Barden Was Influential in WCMS
Stephen Barden—a long-time advocate, leader, and visionary within the credit union movement—recently passed away after a decades-long and memorable career as a credit union CEO, California Credit Union League employee, and Western CUNA Management School (WCMS) Board of Trustees chairman.
PAC GOLF TOURNAMENT RAISES $59K updated
05/21/13 10:13 AM
More Than 165 Attendees
The annual Multi-Chapter PAC Golf Tournament in Valencia, CA attracted approximately 165 credit union CEOs, executives, and volunteers—raising a grand total of $59,055.
IS HOUSING JUST RIGHT, OR TOO HOT? updated
05/17/13 12:36 PM
Economist Looks at 'Bubble' Talk
The “story of the year” in 2012 in California and Nevada was the housing market recovery, one that continued in the first quarter of 2013. Median prices surged by roughly 20 percent last year—a rise that was fueled by extraordinary demand by investors.
SEEKING CU HELPS FOR MEDIA PROJECT updated
05/17/13 03:09 PM
Member Survey Features Taxation Questions
The California and Nevada Credit Union Leagues’ new media outreach project, "Consider This," was launched in February with the help of 15 credit unions who agreed to participate in the program’s pilot phase. The Leagues are now asking for YOUR credit union's participation in a new member survey.