CUNA Mutual Group recently released its May Credit Union Trends Report, compiled with data from March 2019. The report found that credit union loan balances rose 0.3 percent in March, slower than half the 0.8 percent pace reported in March 2018, and 8.1 percent during the last 12 months.
During March 2019, credit unions picked up 324,000 memberships, and loan balances grew at a 6.5 percent seasonally adjusted annualized pace, while savings balances rose at an 8 percent annualized pace.
Credit union memberships rose 0.3 percent in March, down from the 0.4 percent increase reported in March 2018. Memberships increased to 3.7 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 1.6 percent in March 2019, slower than the 1.7 percent gain reported in March 2018. Assets rose 6.4 percent during the past year due to a 5.7 percent increase in deposits, a 4.2 percent increase in borrowings and a 10.1 percent increase in capital.
Loan delinquency rates rose to 0.67 percent in March, below the 0.75 percent natural long-run rate, and up from 0.65 percent one year earlier.
Loan balances are up 8.16 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 82.8 percent, up from 81 percent in March 2018.
To learn more or to view the complete report, visit CUNA Mutual Group’ website.