Credit union loan balances increased in August by 1.0%, compared to a 0.8% increase in July of 2021 and a 0.3% increase in August of 2020. Fixed-rate mortgages led loan growth during the month, rising 1.4%, followed by unsecured personal loans (1.3%), used auto loans (1.2%), credit card loans (0.9%), and home equity loans (0.1%).
On the decline during the month were other mortgage loans (-1.3%), adjustable-rate mortgages (-0.8%), and new auto loans (-0.1%).
Credit union savings balances increased 0.1 % in August, compared to a 1.2% increase in July of 2021 and a 0.3% increase in August of 2020. Money market accounts led savings growth during the month, rising 1.7%, followed by regular shares (0.2%).
On the decline during the month were share drafts (-1.1%), one-year certificates (-0.9%), and individual retirement accounts (-0.1%).
Credit unions’ 60+ day delinquency remained at 0.5% in August.
The loan-to-savings ratio increased from 69.9% in July to 70.4% in August. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) declined from 22.0% in July to 21.7% in August.
Total credit union memberships grew 0.2% during August to 130.2 million.
The movement’s overall capital-to-asset ratio increased from 10.0% in July to 10.1% in August. The total dollar amount of capital increased by 1.0% to $206.7 billion.
Credit Union Magazine’s Summer 2023 issue highlights the lending outlook for the rest of the year, how credit unions leverage fintech companies to boost digital lending, the power of lending partnerships, common Bank Secrecy Act violations, and the shift board members must make when becoming chair.
