|Dwight Johnston, Vice President and Chief Economist for the California and Nevada Credit Union Leagues|
LOANS AND FEES: BUYING TIME IN 2014
updated 02/20/14 07:25 PM
A State-Versus-National Perspective
What’s the key to income growth for credit unions in California and Nevada in 2014?
Now that I’ve stated the obvious, what are the options if your credit union is struggling for loans and expects that struggle to continue into 2014?
Loan growth has turned higher in California and Nevada, but the two states continue to lag behind the nation. As of third quarter 2013, loans grew 6.8 percent nationally, while those in California and Nevada grew 5 percent.
That 5 percent growth is a marked improvement over previous reporting periods, but it has barely moved the needle on the overall loan-to-share ratio.
Moreover, net interest margins have stabilized after a steep decline, yet they are likely to improve marginally, at best, in 2014.
There are different answers for each credit union out there. But for our purposes, I want to focus on two areas that are glaringly different between the national picture versus California and Nevada.