<p>WASHINGTON – Callahan & Associates' First Look preliminary first quarter 2002 data is in, and it shows that even as credit union total income dropped 5% for the first time in awhile, CU net income rose 22.5%. The data, said Callahan & Associates President Chip Filson, shows that credit unions continue to post extraordinary results in an uncertain environment. Compared to First Look data as of 12/31/01, first quarter 2002 data shows CUs increased in key areas including assets, loans, shares, 12-month loan growth, operating expenses/total income, and ROA. Despite a 21.9% 12-month increase in investments, a more than 200 basis point drop in yield resulted in a 20% drop in investment income for the 220 CUs that the data was collected from. The data collected from 220 credit unions with total assets of $143 billion, representing about 28% of the CU industry's assets, showed that the income decline is taking place even as credit unions extend investment maturities, with investments of one year or more making up 42% of CUs' portfolios, compared to 32% a year ago. Still, CUs have managed to continue to maintain earnings, provide their members competitive rates, and lower their average cost of funds 150 bp in the first 12 months when the Fed lowered rates by 275 bp. Overall, First Look data shows, credit unions remain financial sound. Net worth to assets stands at 9.7%, and even as the national economy remains unstable, CUs' delinquency rate remains at 0.6%, the same point it was at as of 12/31/01. -</p> <p>[email protected]</p>