Memberships are up 3.5% over the past year due to modest job creation and demand for credit card loans and real estate loans. Credit union memberships rose a modest 0.32% in July, below the 0.35% increase reported in July 2018.
The report also found loan balances grew at a 4.4% seasonally-adjusted annualized rate and savings balances grew 7.1%.
Total credit union assets fell 0.3% in July due to credit unions losing 0.2% in deposits, but made up for this with a 4.6% surge in borrowings. Assets rose 6.4% during the past year due to a 6.9% increase in deposits, a 6.9% decrease in borrowings and a 10% increase in capital.
Loan delinquency rates came in at a 0.49% decrease in July, down from 0.67% one year earlier, due to a stronger economy and modest loan growth. As the labor market approaches full employment and the unemployment rate falls to 3.5% in 2019, the loan delinquency rate is expected to remain in the 0.5% to 0.65% range for the next year.
Loan portfolios increased by 0.6% in July, less than the 0.8% pace reported in July 2018, and 6% during the last 12 months. July is historically the third-fastest loan growth month in the year.
To learn more or to view the complete report, visit CUNA Mutual Group’s website.