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CUNA: Savings and CU Memberships Increase in September
Monday, November 7, 2016 6:30 AM

Total credit union memberships grew to 108.4 million in September, according to CUNA’s monthly credit union estimates. Perc Pineda, senior economist for CUNA, said it was another good month for credit unions.

“September was another strong month for credit unions. Savings increased 1.5 percent and memberships grew 0.4 percent–to 108.4 million members. Loan growth in September was 0.8 percent—a 10.2 percent increase from a year ago,” he said.

The estimates show strong loan growth in September.

“Aside from auto lending that continued strong in September, fixed rate mortgage lending was up 1.1 percent in September, consistent with stronger new and existing home sales numbers in September compared to August. From a year ago, first rate mortgage lending increased 8.2 percent,” Pineda said. “The housing market continues in recovery mode.  There is ample room for homeownership rate to grow considering higher personal income and low mortgage rates. This should be good news for credit union mortgage lending moving forward.”

Pineda said that by and large, credit union operations remain healthy.

“Asset quality continues to improve with delinquency rate of 0.7 percent in September—down from 0.8 percent in August; asset growth in September was 8.3 percent from a year ago. Credit union assets continue to grow; however, growth rates vary by asset size,” he said. “Nevertheless, small, medium, and large asset-sized credit unions’ asset growth have been positive so far this year–and that includes positive loan and savings growth.”

Credit union loan-to-savings ratio decreased to 78.9 percent in September from 79.4 percent in August. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) increased to 16.1 percent in September from 15.5 percent in August.

The movement’s overall capital-to-asset ratio decreased to 10.7 percent in September from 10.8 percent in August. The total dollar amount of capital grew 0.4 percent to $139.8 billion.