Mortgages, home equity loans lead CU loan growth in April

Credit union loans outstanding increased 0.7% in April, compared to a 0.8% increase in March 2023, and a 1.7% increase in April 2022, according to CUNA’s latest Monthly Credit Union Estimates.  

Other mortgage loans led loan growth rising 2.6%, followed by home equity loans (2.6%), unsecured personal loans (1.8%), credit card loans (1.3%), other loans (1.2%), fixed-rate mortgage loans (0.3%), new auto loans (0.3%), used auto loans (0.2%).  

On the decline were adjustable-rate mortgage loans declining -1.0% in the month. 

Credit union savings balances declined -0.7% in April, compared to a 1.5% increase in March 2023, and 0.7% increase in April 2022. One-year certificates led savings growth in April rising 4.4%, followed by individual retirement accounts (0.1%).  

On decline were share drafts (-3.3%), money market accounts (-2.0%), and regular shares (-1.9%).  

Credit unions’ 60+ day delinquency increased from 0.6% in March to 0.7% in April 2023.  

The loan-to-savings ratio increased slightly to 82.7% in April compared to 81.7% in March. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) decreased to 12.8% in April compared to 12.9% in March.  

Total credit union memberships increased 0.1% in April to 138.6 million.  

The movement’s overall capital-to-asset ratio increased to 9.0% in April compared to 8.9% in March. The total dollar amount of capital increased 1.1% to $203.3 billion.