MCUEs: Total CU memberships hit 118.8M in December 2018

The credit union movement’s overall capital-to-asset ratio increased from 10.8 percent in November to 11.0 percent in December, according to CUNA’s Monthly Credit Union Estimates for December 2018. The total dollar amount of capital for credit unions increased 1.4 percent to $162.3 billion, and total credit union memberships grew 0.4 percent during December to 118.8 million.

“The monthly estimates show that credit union memberships grew a very strong 0.36 percent in December, the fastest December growth since 1994,” said Jordan van Rijn, CUNA senior economist. “If that figure holds up, credit union memberships will have increased 4.52 percent in 2018, the fastest annual membership growth since 1986, and the first time that memberships have increased more than 4 percent for three years in a row since the 1970s.”

Credit union loans outstanding grew 0.6 percent in December 2018, matching the growth for November. Credit card loans led loan growth during the month, rising 2.0 percent, followed by fixed-rate mortgages (1.3 percent), unsecured personal loans (1.2 percent), new auto loans (1.1 percent), other mortgage loans (0.4 percent), and used auto loans (0.2 percent).

There is growing evidence that rising interest rates are beginning to affect the mortgage market. According to the monthly estimates, total first mortgages were up a strong 0.93 percent in December; however, HELOCs and second mortgages were down 0.76 percent,” van Rijn said. “Overall, HELOCs are on pace for the slowest annual growth since 2013, and first mortgages are on track for the slowest growth since 2012. The data also reflect a shift toward adjustable rate mortgages, which are on pace to grow 10.65 percent in 2018, the fastest growth in adjustable rate mortgages since 2014.

Credit union savings balances declined -0.1 percent in December, compared to a 1.5 percent increase in November. One-year certificates led savings growth during the month, rising 1.0 percent, followed by money market accounts (0.3 percent).

On the decline during the month were share drafts (-2.2 percent), individual retirement accounts (-0.5 percent), and regular shares (-0.2 percent).

The December monthly estimates show that rising interest rates are affecting depositors as well: certificates of deposit (CDs) grew 1.00 percent in December, the fastest December increase since 2008,” van Rijn said. “Overall, the estimates show CDs increased an incredible 11.45 percent in 2018, which would be the fastest annual growth in certificates since 2007. This may also reflect lower consumer confidence—which has fallen dramatically over the past few months—since households often shift from borrowing to saving when the outlook for the economy worsens or uncertainty rises.”

Credit unions’ 60+ day delinquency remained at 0.67 percent in December.

The loan-to-savings ratio increased from 85.2 percent in November to 85.8 percent in December. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) declined from 13.3 percent in November to 12.5 percent in December.

Source: CUNA