Q3 Profile Report: Credit unions in strong position to ‘weather the storm’

The New York Credit Union Association, in conjunction with CUNA, has released the Third Quarter 2020 New York Credit Union Profile report. The report provides relevant and up-to-date analysis of key statistics and trends that impact credit union performance.

The COVID-19 virus continued to spread across the U.S. in the third quarter of 2020, while the economy showed signs of a relatively quick rebound from the recent recession, as the unemployment rate fell from a high of 14.7% in April to 7.9% by September. In New York, the unemployment rate fell from a high of 15.9% in June to 9.7% in September.

Highlights from the report include:

Membership growth: The low interest-rate environment and strong housing market have bolstered credit union membership growth, with credit union memberships growing 0.7% in the third quarter and 2.5% over the past year. Membership growth is slightly above last year’s pace of 2.1%.

Total loans: In New York, total loans grew 1.6% in the third quarter and are up 5.3% over the past 12 months.

Auto loans: Used auto loans grew at 3.1%.

Housing market: The housing market is seeing skyrocketing housing prices due to both record low mortgage rates and an increase in demand as consumers choose to invest in housing as they work from home and leave urban apartments. First mortgages grew 2.1%, while second mortgages grew just 0.1%.

Total savings at credit unions: After growing 8.0% in the second quarter, total savings at credit unions grew a more modest 1.3% in the third quarter. Overall, credit union savings balances have grown 14.9% over the past 12 months through September, spurred by government stimulus checks and precautionary savings.

Overall, 2021 will likely present many challenges for credit unions, including lower earnings and a deterioration in portfolio quality, according to the report. Yet, with vaccines on the horizon and a recovering economy, most credit unions are in a strong position to weather the storm and continue to serve their members with distinction.

The report was emailed to the main contacts at Association member credit unions this week. For assistance with accessing the reports, contact the Association’s member relations team at member.relations@nycua.org or (800) 342-9835 ext. 8546.

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