Memberships, lending still stars of CUNA mo. estimates

October 6, 2015

MADISON, Wis. (10/6/15)--Credit union loan portfolios and memberships continued to demonstrate healthy levels of growth in August, according to CUNA’s latest credit union monthly estimates.

Loans outstanding rose 1.2% during the month, a pace slightly ahead of last year’s performance in August of 1.1%. On an annual basis loan portfolios expanded by 10.5%.


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Furthermore, all reported loan categories experienced an increase.

Adjustable-rate mortgages led the way with a 1.9% jump, used-auto loans and home-equity lines of credit each stepped up by 1.5%, and unsecured personal loans, new-auto loans, other mortgages and credit-card loans each climbed by 1.4%.

“The positive relationship between (gross domestic product) growth and loan growth is visible in the August estimates,” said Perc Pineda, CUNA senior economist. “As the economy continues to expand, credit union loan growth is sustaining its positive run.”


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New- and used-auto loans increased 16.5% and 17% respectively on an annual basis, while credit card loans were up 6.3% and unsecured personal loans rose 10.3% year-over-year, according to Pineda.

“These numbers underscore the relevance of credit union lending on the macro economy,” Pineda said.

Memberships also continued to rise, with total U.S. credit union memberships climbing by 0.6% in August to 104.3 million.

The movement’s capital-to-asset ratio, meanwhile, rose to 10.8% during the month, pushing the total dollar amount of capital at the nation’s credit unions to $129.3 billion.

Additionally, asset quality continued to remain strong, as the 60-plus day delinquency rate stood at 0.7%.

“Total nonfarm payrolls in August were revised downward, and September’s unemployment rate came in unchanged from August at 5.1%,” Pineda said. “There is a positive relationship between the unemployment rate and the delinquency rate at credit unions.”