CUNA Mutual Group recently released its April Credit Union Trends Report, compiled with data from February 2019. The report found that credit union loan balances rose 0.1 percent in February, slower than the 0.2 percent pace reported in February 2018, and 8.6 percent during the last 12 months.
During February 2019, credit unions picked up 281,000 memberships, and loan balances grew at a 6 percent seasonally adjusted annualized pace, while savings balances rose at an 8.7 percent annualized pace.
Credit union memberships rose 0.24 percent in February, down from the 0.4 percent increase reported in February 2018. Memberships increased to 3.9 percent over the past year due to a robust demand for indirect auto credit, solid job growth and comparatively lower fees and loan interest rates compared to banks.
Total credit union assets rose 2 percent in February 2019, faster than the 1.2 percent gain reported in February 2018. Assets rose 6.6 percent during the past year due to a 6.3 percent increase in deposits, a 1 percent decrease in borrowings and a 9.7 percent increase in capital.
Loan delinquency rates fell to 0.69 percent in February, down from 0.75 percent one year earlier.
Loan balances are up 8.6 percent during the last 12 months. While loan balances are growing faster than savings, credit union liquidity is tightening up as the credit union average loan-to-savings ratio reached 84.1 percent, up from 82.2 percent in February 2018.
To learn more or to view the complete report, visit CUNA Mutual Group’s website.