CUNA Mutual Group recently released its July Credit Union Trends Report, compiled with data from May 2019. The report found that credit union loan balances rose 0.6 percent in May, less than the 1.2 percent pace reported in May 2018.
During May 2019, credit unions picked up 367,000 in new memberships, and loan balances grew at a 6.2 percent seasonally adjusted annualized pace, while savings balances rose at a 7.1 percent annualized pace, above the 6.1 percent 10-year average growth rate, due to members’ desire to save rather than spend.
Credit union memberships rose 0.31 percent in May, down from the 0.42 percent increase reported in May 2018. Memberships increased to 3.8 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 to 1.2 percent in May 2019, better than the 0.1 percent rise reported in May 2018, due to the month ending on a payday Friday. Assets rose 7.2 percent during the past year due to a 7.2 percent increase in deposits, a 4 percent decrease in borrowings and a 10.8 percent increase in capital.
Loan delinquency rates came in at 0.52 percent in May, below the 0.64 in May 2018, and below the natural delinquency rate of 0.75. 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 6.4 percent during the last 12 months. While loan balances are growing slower than savings, credit union liquidity is tightening up as the credit union average loan-to-savings ratio reached 82.9 percent, down from 83.2 percent in May 2018.
To learn more or to view the complete report, visit CUNA Mutual Group’ website.