Credit unions loans continue to grow as overall membership also increase, while savings was dipped slightly, according to CUNA’s August Monthly Credit Union Estimates.
Credit union loans outstanding grew 1.1% in August, following a 0.9% increase in July. Unsecured personal loans led August loan growth, rising 2.1%. Adjustable-rate mortgages were up slightly to 0.5%. Other mortgage loans bumped higher 0.4%.
New and used auto lending remains strong increasing 1.6% and 1.2%, 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% 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%, lower than the 1.0% and 1.1% 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%, from August last year.”
New and used auto lending remains strong increasing 1.6% and 1.2%, 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% and adjustable mortgage lending rose 0.51%. Home equity loans increased 1.3%. “Both fixed and adjustable mortgage lending rose 8.25% and 11.6%, respectively from a year ago--consistent with a housing market that continues to recover,” Pineda said.
Credit union savings balances declined 0.1% in August, compared with a 0.5% increase in July. One-year certificates led savings growth, rising 1.1%, followed by share drafts and money market accounts (both rising 0.8%), and individual retirement accounts (0.03%). Regular shares declined 1.3% 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% during August to 108.1 million.
The loan-to-savings ratio increased to 79.4% in August from 78.5% 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% in July to 15.6% in August.
Credit unions’ 60-plus day delinquency remained at 0.8% in August.
The movement’s overall capital-to-asset ratio increased to 10.8% in August from 10.7% in July.
The total dollar amount of capital grew 0.4% to $139.2 billion.