Credit Union's Earnings Dipped 3% Last Year in a 'Return to norman.'(Callahan & Associates Report)

By Dietrich, R. Kevin | American Banker, April 8, 1996 | Go to article overview

Credit Union's Earnings Dipped 3% Last Year in a 'Return to norman.'(Callahan & Associates Report)


Dietrich, R. Kevin, American Banker


The earnings of U.S. credit unions fell last year, but industry experts are shrugging it off.

While federally insured commercial banks were boosting their aggregate income by 9%, to a record $48.8 billion, credit unions suffered a 3% decline, to $3.4 billion.

For the 100 largest credit unions, which control 27% of the $311 billion of assets at 11,887 institutions, net income fell 4%, to $883 million. (Industry rankings and summary tables, based on data from Callahan & Associates, begin on page 8.)

"Generally speaking, it was a really good year for credit unions," said Keith Peterson, economist with Credit Union National Association, Madison, Wis. "Deposit levels were up in '95, and loan growth, which was extremely strong in '94, dropped back to more normal levels.

"Compared to 1994, the past year was a return to normal."

Growth in total assets was up from 1994, but not by much. The top 100 credit unions registered a 7.81% increase in assets, just ahead of 1994's 6.3% increase, the lowest growth rate in the decade. For the industry as a whole, assets grew by 5.14%, up from 4.7%, which was the slowest rate since 1989's low point, 0.6%.

The 1995 decline in net income could be traced to credit unions' response to interest rate changes, said Tun Wai, director of research and analysis at the National Association of Federal Credit Unions, Alexandria, Va.

"Generally, credit unions don't change their rates with the same frequency that banks do," Mr. Wai said. "As a result, the cost of funds may be higher than that of other competitors, which will usually cause a decline in net income."

Credit union balance sheets may also be less susceptible to swings.

"Banks certainly have the capacity to make more money than credit unions, and they also have the capacity to lose more money than credit unions," said Jeff Wells, vice president of Santa Cruz Community Federal Union, Santa Cruz, Calif.

"When all is going well economically, as it was last year, it's natural for banks to be able to post record profits," he said. "It isn't that credit unions were doing bad so much as that banks were doing extremely well. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

Credit Union's Earnings Dipped 3% Last Year in a 'Return to norman.'(Callahan & Associates Report)
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.