CUs a magnet for half-a-million new members in July: CUNA estimates
MADISON, Wis. (9/3/15)--Membership and loan growth at America’s credit unions continue to post steady gains, according to CUNA’s credit union monthly estimates for July.
Memberships rose 0.4% or by roughly 500,000 members in July to 103.9 million members nationwide.
“This is the ninth consecutive month of above 3% yearly growth in memberships,” Perc Pineda, CUNA senior economist, told News Now. “We estimate half-a-million members were added in July from June.”
Loan growth also kept a long positive streak alive, with credit union loans outstanding recording higher than 10% annual growth for the 10th straight month.
Monthly loan growth, which increased by 1% overall in July, was fueled by unsecured personal loans and adjustable-rate mortgages, which both rose by 2.3%.
Also posting increases in growth were home-equity loans at 2.2%, used-auto loans at 1.9%, new-auto loans at 1.5%, and credit card loans at 0.5%.
“We expect this trend of solid loan growth to continue, reflecting sound U.S. economic fundamentals,” Pineda said.
Asset quality continued to strengthen in July as well, with the delinquency rate on loans slipping to 0.6% from 0.7% for the month. The credit union movement’s capital-to-asset ratio also declined to 10.7% from 10.8%.
Savings balances, meanwhile, climbed 1% in July after a 0.1% uptick the previous month. Share drafts led growth, rising 6.3%, while regular shares rose 0.5%.
“As more Americans are employed and credit union memberships increase, predictably, savings balances at credit unions climb higher,” Pineda said. “This was evident in July when savings balances increased dramatically by 12% compared with 1.2% in June on an annualized basis.”