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Near Year-End Credit Union Numbers Exceptional
Tuesday, January 13, 2015 6:35 AM

Year-to-date loan growth for America’s credit unions is stronger than at any time in the past half-decade. At the end of November, loan portfolios had grown 9.6 percent, or nearly 50 percent more than loan growth at the end of November 2013. The loan-to-savings ratio increased to 74.5 percent in November. In total, the loan portfolios now top $723 billion.

Leading the loan growth has been a rise in auto loans (1.3 percent), followed by unsecured personal loans, credit card loans, ARMs, used cars, home equity, and fixed-rate first mortgages. By dollar amount, the nation’s credit unions had over 28 percent of the portfolio in fixed-rate first mortgages, 20 percent in used cars, 12 percent in new autos, and 11 percent in unsecured loans.

Overall, credit unions have an 11 percent share of the $2.4 trillion non-revolving loan market, and loan delinquency is less than one percent (0.77 percent). In the $3.3 trillion consumer loan market credit unions manage a 9.1 percent market share.

Capital remains at 10.8 percent, with a total amount across the nation reaching $124.2 billion. Gross spread at the end of third quarter was 283 basis points with net spread at 108 basis points. Seven years ago, right before the recession, gross spreads were 310 basis points and net spreads were 107 basis points. The biggest difference between then and now: yield on assets (5.89 percent in 2007 versus 3.35 percent today).

Over 102 million memberships are now with credit unions, or slightly more than 32 percent of the population. Assets have now reached $1.15 trillion. Within the household savings market, credit unions command a 9.6 percent market share. Members have most of their CU deposits in regular savings accounts (35 percent), money-market accounts (23 percent), certificates (20 percent), share drafts (14 percent), and IRAs (8 percent).

Credit unions now have $379 billion in surplus funds, with 44 percent in liquid funds. Non-liquid funds are on deposit with agencies (50 percent), other organizations (34 percent), commercial banks (12 percent), the U.S. Government (3 percent), and corporate CUs (1 percent).

By contrast, 20 years ago credit unions had 33 percent of their surplus finds in agencies, 22 percent in corporate CUs, 17 percent in the U.S. Government, 15 percent in banks, 8 percent in other organizations, and 5 percent in cash.

 

Source:  Cornerstone Research and CUNA statistical estimates, 7 January 2015