The percentage of assets with maturities exceeding three years declined in the first half of this year. Contributing to this shift is the trend favoring shorter term investments, as mentioned earlier, and the trend in shorter term lending. During the second half of 1994, share growth stagnated while loan growth accelerated, raising concerns about a near term liquidity crunch. The figures for the first half of 1995 indicate that loan growth moderated, while share growth gained momentum. The result is a more balanced level of loan and share growth.
Net capital is defined as capital less classified assets.
Classified assets are estimated by summing the allowance for investment losses, allowance for loan losses, and the investment valuation reserve for state chartered credit unions. The ratio of net income to average assets measures the return on assets after operating expenses, non-operating expenses or income, and cost of funds, but before transfers to reserves.