MADISON, Wis. (9/11/15)--Credit unions added $10.2 billion in loans to their balance sheet in June, the fastest growth in their history, as members continued showing signs of economic health and confidence, said CUNA Mutual Group’s latest Credit Union Trends Report.
Consumer installment credit loan balances for auto, credit card, and other unsecured loans grew 13.7% during the 12 months ended in June, their fastest pace since September 2009. The loans pulled the year’s overall loan growth average to 10.9%.
Savings balances at credit unions rose 4.4% during the first half of 2015, compared with a 3.3% rise for the first half of 2014.
“Although the stock market has encountered a period of heightened volatility over the past several weeks, the fundamentals of the middle market economy have continued to improve based on what we’re seeing from credit union members,” said CUNA Mutual Group Chief Economist Steven Rick.
“Credit union performance is a key barometer of the economic health of the hardworking American, and the strong growth in loans and savings tells us these consumers are feeling increasingly better about their financial outlook,” Rick said.
The report also noted robust growth in credit union membership, which rose by 440,000 or 0.43%, the highest monthly growth rate since July 2013. Membership in credit unions now totals 103 million, which is 32.5% of the U.S. population. Memberships grew 3.3% over the past 12 months. CUNA Mutual cited rapid job creation and strong demand for new- and used-auto loans, resulting in the fastest growth rate in more than 20 years.
New-auto loan balances increased 2% in June, the fastest monthly pace so far this year, said the report.