Rates & Ratios: Members Take Up ARMs

Adjustable-rate mortgages grow 1.9% during March.

May 18, 2011

Credit union loans outstanding decreased 0.1% during March 2011 compared to a 0.4% decrease in February 2011, according to CUNA’s economics and statistics department.

Leading the decline during March were unsecured personal loans (-1.3%), home equity loans (-0.8%), credit cards (-0.7%), and new auto loans (-0.6%).

Bucking this trend were adjustable-rate mortgages, which grew 1.9% during March, and used auto loans, which increased 0.5%.


Credit union savings balances grew 1.3% in March compared to a 1.8% increase during February.

Regular shares led savings growth, increasing 3.6%, followed by money market accounts, 1.4%, share drafts, 1.2%, and individual retirement accounts, 0.7%.

One-year certificates declined 0.8%.

Other measures during March:

  • Asset quality: Credit unions’ 60+ day delinquencies fell slightly to 1.6%;
  • Liquidity: The loan-to-savings ratio fell to 69% , while the liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) remained at 19%; and
  • Capital: The movement’s overall capital-to-asset ratio remained at 10%. The total dollar amount of capital is $94 billion.

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