This condition will be further exacerbated if market interest rates continue their steady rate of increase and credit unions increase their cost of funds without a corresponding increase in asset yield. The percentage of assets with maturities exceeding 3 years increased from yearend 1993 to midyear 1994. As mentioned before, real estate loans, which are generally longer term than other types of loans, contributed significantly to asset growth during the first half of 1994, and are partially responsible for the change evidenced in the long-term asset ratio. Also contributing to the upward shift in long-term assets is the increasing maturity of the investment portfolio. The following table and the graphic presentation attached to this report show regional comparisons of key ratios and trends.
Net capital is defined as capital less classified assets.