Home equity loans power November CU loan growth

January 6, 2016

MADISON, Wis. (1/6/16)--Credit union loans, particularly home equity loans, saw growth in November 2015, a total of 0.6%, according to the Credit Union National Association’s (CUNA) monthly credit union estimates. Home equity loans grew by 1.5% in November, followed by unsecured personal loans (1.4%), new auto loans (1.1%), credit card loans (1%), fixed-rate first mortgages (0.5%) and adjustable-rate mortgages (0.4%).

“Our November credit union estimates are consistent with the continued improvement of the U.S. economy. Better economic conditions are boosting consumer confidence leading to an increase in consumer borrowing and spending as reflected in our November estimates,” Perc Pineda, senior economist at CUNA, told News Now. “Credit union loans outstanding increased 0.6% in November, up 9.3% since January 2015.”

Credit union savings balances declined 0.2% in November, compared to a 1.5% increase in October. However, Pineda noted that savings growth in 2015 has outpaced CUNA’s forecast.


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“Savings growth year-to-date ending November came in at 5.6%.  That is well above our forecast of a 4.8% savings growth in 2015,” he said.

Share drafts led growth, rising 0.9%, followed by one-year certificates (0.2%). Regular shares (-1.0%), money market accounts (-0.3%) and individual retirement accounts (-0.02%) all declined during November.

Memberships in credit unions grew 0.4% in November to 105 million.

“From a year ago, memberships are up 3.8% close to our forecast of a 3.9% increase in memberships in 2015,” Pineda said.


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The loan-to-savings ratio increased from 77.1% in October to 77.7% in November. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) decreased from 16.6% in October to 15.7% in November.

The movement’s overall capital-to-asset ratio remained at 10.8% in November. The total dollar amount of capital is $131.5 billion.