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CUNA MCUE: Loans, Membership Up, Savings Down
Tuesday, October 11, 2016 6:45 AM

Credit unions loans continue to grow as overall memberships also increase, while savings was dipped slightly, according to CUNA’s August Monthly Credit Union Estimates.

Credit union loans outstanding grew 1.1 percent in August, following a 0.9 percent increase in July. Unsecured personal loans led August loan growth, rising 2.1 percent. Adjustable-rate mortgages were up slightly to 0.5 percent. Other mortgage loans bumped higher 0.4 percent.

New and used auto lending remains strong increasing 1.6 percent and 1.2 percent, respectively in August. “Credit unions continue to experience double digit auto lending over the previous 12-month period,” said Perc Pineda, CUNA senior economist.

Pineda also noted that weak August retail sales, which fell 0.30 percent after four consecutive months of increases, are reflected in credit card loan growth at credit unions.

“In August, credit card loan growth was 0.79 percent, lower than the 1.0 percent and 1.1 percent increase in June and July, respectively when retail sales were upbeat,” he said. “Still, credit card loan growth at credit unions went up 6.7 percent, from August last year.”

New and used auto lending remains strong, increasing 1.6 percent and 1.2 percent, respectively in August. “Credit unions continue to experience double digit auto lending over the previous 12-month period,” Pineda said.

Although home sales were weaker in August compared with July, fixed-mortgage lending at credit unions rose 1.2 percent and adjustable mortgage lending rose 0.51 percent. Home equity loans increased 1.3 percent. “Both fixed and adjustable mortgage lending rose 8.25 percent and 11.6 percent, respectively from a year ago—consistent with a housing market that continues to recover,” Pineda said.

Credit union savings balances declined 0.1 percent in August, compared with a 0.5 percent increase in July. One-year certificates led savings growth, rising 1.1 percent, followed by share drafts and money market accounts (both rising 0.8 percent), and individual retirement accounts (0.03 percent). Regular shares declined 1.3 percent during August.

In August credit union savings balances growth was softer than in July, but from a year ago, it went up 7.3,” said Pineda.

Total credit union memberships grew 0.5 percent during August to 108.1 million.

The loan-to-savings ratio increased to 79.4 percent in August from 78.5 percent in July The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) increased from 16.2 percent in July to 15.6 percent in August.

Credit unions’ 60-plus day delinquency remained at 0.8 percent in August.

The movement’s overall capital-to-asset ratio increased to 10.8 percent in August from 10.7 percent in July.

The total dollar amount of capital grew 0.4 percent to $139.2 billion.