MADISON, Wis. (4/5/16)--Credit union loan growth topped 0.3% in February, pacing a 0.9% increase on an annual basis, according to the Credit Union National Association’s (CUNA) monthly credit union estimates.
Bill Hampel, CUNA chief policy officer/chief economist, noted that the month’s performance was impressive historically, and not just because of the extra day afforded to February by a leap year.
“Unusually strong,” Hampel said. “Strongest year-to-date loan growth in February since the early 90s."
The loan-to-savings ratio also remained healthy on an annual basis, coming in at 76.8% for the month, up from 73.5% the previous year and 69.1% the year before that. CUNA economists expect to climb to 80% by the end of 2016 and to 85% by the end of 2017.
Hampel said this healthy trend points to the advantage of the cooperative credit union model.
“It’s a nice number,” Hampel said. “Credit unions are in the business to do as much lending to their members from the savings of their members as they can, so having a number above 80% is good news for credit unions.”
Additional numbers from the February monthly estimates: