Rates & Ratios: Mortgages Lead June Loan Growth

Home equity loans lead growth, increasing 3.2%.

August 8, 2011

Credit union loans outstanding increased 0.3% during June 2011 compared to a 0.4% increase in May 2011, according to CUNA’s economics and statistics department.

Home equity loans led loan growth with a 3.2% increase, followed by fixed-rate mortgages, 3.1%, used auto loans, 0.9%, unsecured personal loans, 0.7%, and credit cards, 0.6%.

New auto loans and adjustable-rate mortgages declined 0.3% and 3.4%, respectively.

Credit union savings grew 0.1% in June compared to a 0.7% decrease during May.

Regular shares led savings growth, increasing 1.2%, followed by individual retirement accounts, 0.6%, and money market accounts, 0.3%.

On the decline were share drafts (-2.1%) and one-year certificates (-0.6%).

Other measures in June:

  • Asset quality: Credit unions’ 60+ day delinquency rate remained at 1.6%;
  • Liquidity: The loan-to-savings ratio increased slightly to 70%, and the liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) increased slightly to 19%; and
  • Capital: The movement’s overall capital-to-asset ratio remained at 10%. The total dollar amount of credit union capital is $97 billion.

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