Unsecured Loans Lead Overall Decline

CU loans outstanding fell 0.4% during February.

April 5, 2011

Credit card and unsecured personal loans outstanding declined 1.8% during February, leading an overall loan decline of 0.4% during the month, according to CUNA's economics and statistics department.

Also on the decline were new auto loans (-1.2%), home equity loans (-0.4%), and used auto loans (-0.2%), CUNA reports.

Lending bright spots included adjustable- and fixed-rate mortgages, which grew 0.9% and 0.1%, respectively.

Credit union savings balances grew 1.2% in February compared to a 0.1% decrease in January. Share drafts increased 6.9%, followed by regular shares, which grew 3.5%.

On the decline were money market accounts (-1%) and one-year certificates (-0.6%).

Other findings from February:

  • Credit unions’ 60+ day delinquencies remained at 1.7%;
  • The loan-to-savings ratio fell to 70%;
  • The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) remained at 19%; and
  • The credit union movement’s overall capital-to-asset ratio remained at 10%.

The total dollar amount of capital is $94 billion.

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