PLANO, Texas (10/7/10)--Credit union CEOs' confidence level dropped 9.76 percentage points--to 10.97--during third quarter, according to the Southwest Corporate FCU's CEO Confidence Index, posted on its website. The index for credit union CEOs' confidence overall declined from 20.73 in second quarter and from 29.01 for third-quarter 2009. It was the second lowest overall confidence rating since 2004. The lowest was in first quarter 2009 at the height of the global financial crisis. The third quarter report arrives on the heels of corporate restructuring actions--including conservatorships of three corporate credit unions and assessments to replenish the National Credit Union Share Insurance Fund--taken in the past three weeks by the National Credit Union Administration. The index compared CEOs' current confidence level in members' financial condition and their confidence in members' condition in six months, as well as their confidence in credit unions' financial condition for both periods. For members' condition, the confidence level for third quarter dropped to -2 from about 30 in second quarter and about 12 in third quarter last year. Expectations for members' financial condition in six months were higher, at slightly above 10. The confidence level for credit unions' financial condition stayed largely steady--at about 19--from second quarter. That was down from about 35 in third quarter last year. CEOs' confidence for six months in the future followed the same pattern, but around 25. CEOs' current expectations for share deposit growth, which peaked in first quarter at nearly 40 fell to 30 at the end of second quarter. Expectations for loan demand stayed steady after plunging from above 20 during third quarter 2009 to about 1% in first quarter 2010, where it has remained since. The CEOs' level of confidence varied widely by region and by credit union asset size. Those with the lowest confidence were in the Western (-30) and Mid-Atlantic (-25) states, while the Midwest (4.17) had the highest level of confidence. The only asset category with a positive confidence level was for CEOs from $2 million to $10 million asset credit unions; their confidence level was 6.52. All other asset groups registered in negative numbers, with credit unions of less than $2 million in asset size the most pessimistic, at -12.5.