It's no wonder that credit unions have found success offering a wide variety of loans to their members–after all, lending continues to be the foundation of our industry's product offerings. But in today's challenging environment, financial institutions are seeing a lackluster loan demand, as a result of a slower economy and modest consumer spending. As competition forces loan yields down, some credit unions find themselves having to reassess their true mission: to serve members or potential members at any cost, or achieve a predetermined bottom line. To make these decisions, credit unions' need to know what they are truly yielding on loans.

Taking an in-depth look

Considering today's economy, loans in general are not expected to perform as well this year, with credit quality likely to deteriorate and delinquencies on the rise. That, in turn, may well drive down profitability. Some loans–in the consumer market and especially those made through indirect lending–are not likely to be as rewarding as in the past.