Membership and deposits growth highlighted the CUNA’s February Monthly Credit Union Estimates.
Memberships grew 0.40% in February, an annualized pace of 4.80%. This follows strong membership growth of 0.41% in January.
“Memberships are off to a strong start to the year, which bodes well for another year of rapid credit union membership growth,” said Jordan van Rijn, CUNA senior economist.
Credit union savings balances increased 2.4% in February. Share drafts led savings growth during the month, rising 7.2%, followed by regular shares (3.2%), money market accounts (0.7%), one-year certificates (0.5%), and individual retirement accounts (0.03%).
“Tax cuts and refunds appear to have increased personal savings,” van Rijn said. “The 7.2% jump in share drafts is the largest increase in three years.”
Credit union loans outstanding grew 0.5% in February 2018, compared with a 0.7% increase in January.
“The February monthly estimates show relatively slow loan growth of 0.50%--or an annualized past of 6%--but this is typical for the beginning of the year,” van Rijn said. “In fact, February 2017 saw loan growth of only 0.09%, so this February’s growth was well above last year’s pace.”
Used auto loans led loan growth in February, rising 0.8%, followed by new auto loans at 0.7%. “This shows continued strong demand for auto loans, which we expect to continue through 2018,” van Rijn said.
Credit unions’ 60-plus day delinquency declined to -4.7% in February from 0.8% during January.
The loan-to-savings ratio decreased to 82.6% in February from 84.1% in January. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) increased to 14.9% in February from 13.5% in January.
The movement’s overall capital-to-asset ratio decreased to 10.5% in February from 10.7% in January. The total dollar amount of capital increased 0.2% to $150.3 billion.