Credit union loans outstanding grew 0.05% in November, compared to a 0.11% increase in October and a 1.54% increase in November of 2019, according to CUNA’s Monthly Credit Union Estimates.
“November is often a strong month for credit union loan growth, as members increase spending during the holiday season,” said CUNA Senior Economist, Jordan van Rijn. “However, this year was different as the pandemic depressed travel and spending, and many consumers used savings instead of credit for their holiday shopping.”
Other mortgage loans led loan growth during the month, rising 0.92%, followed by fixed-rate mortgages (0.88%), and credit card loans (0.85%). On the decline during the month were used auto loans (-0.04%), new auto loans (-0.17%), adjustable-rate mortgages (-0.84%), unsecured personal loans (-0.91%), and home equity loans (-2.09%).
Credit union savings balances increased 0.20% in November, compared to a 1.83% increase in October and a 1.54% increase in November of 2019. Money market accounts led savings growth during the month, rising 1.96%, followed by regular share (0.65%). On the decline during November were certificates of deposit (CDs) (-0.31%), individual retirement accounts (-1.59%), and Share drafts (-1.90%).
“The draw-down in savings is not too surprising,” says van Rijn. “The recession and government stimulus led many people to increase savings, but it’s natural that they would use those deposits during the holiday season. Nonetheless, we expect credit union savings growth to pick up again in December and January as the next round of stimulus payments come through.”
Credit unions’ 60-plus day delinquency increased to 0.60% in November.
The loan-to-savings ratio decreased slightly from 75.0% in October to 74.9% in November. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) fell from 20.5% in October to 20.0% in November.
Total credit union memberships grew 0.15% in November to 126.4 million.
The movement’s overall capital-to-asset remained at 10.4% in November. The total dollar amount of capital increased by 0.87% to $193.0 billion.