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Home Equity Loans Power November Loan Growth in Credit Unions
Thursday, January 7, 2016 6:45 AM

Credit union loans, particularly home equity loans, saw growth in November 2015, a total of 0.6 percent, according to the Credit Union National Association’s monthly credit union estimates. Home equity loans grew by 1.5 percent in November, followed by unsecured personal loans (1.4 percent), new auto loans (1.1 percent), credit card loans (1 percent), fixed-rate first mortgages (0.5 percent) and adjustable-rate mortgages (0.4 percent).

“Our November credit union estimates are consistent with the continued improvement of the U.S. economy. Better economic conditions are boosting consumer confidence leading to an increase in consumer borrowing and spending as reflected in our November estimates,” Perc Pineda, senior economist at CUNA. “Credit union loans outstanding increased 0.6 percent in November, up 9.3 percent since January 2015.”

Credit union savings balances declined 0.2 percent in November, compared to a 1.5 percent increase in October. Savings growth year-to-date ending November came in at 5.6 percent, well above the forecasted 4.8 percent.

Share drafts led growth, rising 0.9 percent, followed by one-year certificates (0.2 percent). Regular shares (-1.0 percent), money market accounts (-0.3 percent) and individual retirement accounts (-0.02 percent) all declined during November.

Memberships in credit unions grew 0.4 percent in November to 105 million. From the year prior, memberships are up 3.8 percent.

The loan-to-savings ratio increased from 77.1 percent in October to 77.7 percent in November. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) decreased from 16.6 percent in October to 15.7 percent in November.

The movement’s overall capital-to-asset ratio remained at 10.8 percent in November. The total dollar amount of capital is $131.5 billion.