Credit union loans continued to grow at the pace predicted by CUNA economists and savings balances also increased, according to CUNA’s monthly estimates.
Credit union loans outstanding increased 1% in December 2016, after rising .9% in November. December’s loan totals were led by fixed-rate first mortgages, which jumped 3.6%, followed by credit card loans (2.2%), new auto loans (1.9%), unsecured personal loans (0.7%), and used auto loans (1%).
December capped a strong year for America’s credit unions, according to Perc Pineda, CUNA senior economist.
“No doubt, 2016 was another good year for credit unions,” Pineda said. “First off, savings, loan, assets, and membership growth rates exceeded our forecast for 2016. Savings balances increased 7.7%; loan growth was up 10.9%; assets rose 7.3%; and memberships increased 4.5%. The double digit loan growth in 2016, by the way, was not due to indirect lending. In fact, looking at the latest call report data, outstanding indirect loan balances in the third quarter was only 18% of outstanding total loan balances.”
Pineda said there’s more good news to come in 2017. Last month, CUNA economists predicted 10% lending growth for 2017 in the CUNA Economic and Credit Union Forecast.
In December credit union memberships grew 0.4% during to 109.6 million.
Credit union savings balances increased 1.3% in December, compared with a 0.2% increase in November. Regular shares led savings growth, rising 2.5%, followed by share drafts (2.4%), and money market accounts (1.2%). One-year certificates and individual retirement accounts both declined 0.3% during the month.
Credit unions’ 60-plus day delinquency remained at 0.8% in December.