CUNA Mutual Group recently released its June Credit Union Trends Report, compiled with data from April 2019. The report found that credit union loan balances rose 0.6 percent in April, less than the 0.9 percent pace reported in April 2018, and 1.4 percent during the last 12 months.
During April 2019, credit unions picked up 136,000 in new memberships, and loan balances grew at a 5.9 percent seasonally adjusted annualized pace, while savings balances rose at a 7.8 percent annualized pace.
Credit union memberships rose 0.11 percent in April, down from the 0.31 percent increase reported in April 2018. Memberships increased to 3.6 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 fell to 0.6 percent in April 2019, slower than the 0.4 percent drop reported in April 2018. Assets rose 6.3 percent during the past year due to a 5.9 percent increase in deposits, a 5 percent decrease in borrowings and a 10.6 percent increase in capital.
Loan delinquency rates rose to 0.68 percent in April, up from the 0.66 percent in April 2018. Credit union loan charge-offs fell to 0.57 percent in the first quarter of 2019, down from the 0.6 percent reported in the first quarter of 2018.
Loan balances are up 7.8 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 83.8 percent, up from 82.4 percent in April 2018.
To learn more or to view the complete report, visit CUNA Mutual Group’ website.