WASHINGTON—Credit unions continued their strong membership growth in April, according to CUNA’s monthly credit union estimates.
“Credit unions continue to contribute to the expansion of the U.S. economy,” said CUNA Senior Economist Perc Pineda. “On an annualized basis lending increased 6% and savings grew 10.8%. Assets increased 1.1% from March to April. More importantly, memberships are now at 106.7 million--that’s a 0.3% increase from March to April.”
CUNA reported that credit union loans outstanding grew 0.5% in April, with increases in the following categories:
- 2.5%, adjustable-rate mortgages;
- 2.1%, home equity loans;
- 1.3%, used auto loans;
- 1%, unsecured personal loans;
- 0.8% new auto loans;
- 0.3% other mortgage loans; and
- 0.2%, credit card loans.
“My sense is that the increase in home equity loans reflect borrowers and lenders confidence of stable home values. In fact, home prices are higher about 5% from a year ago,” Pineda said. “So, wealth effect from appreciating real asset values will positively affect personal consumption expenditures, which in April rose by 1% or 12% on an annualized basis.”
The loan-to-share ratio declined to 76.4% in April from 76.7% in March, while the liquidity ratio improved to 17.4% in April from 16.8% in March, CUNA explained.
Credit union savings balances increased 0.9% in April, compared with a 1.6% increase in March, with increases in the following categories:
- 3.3%, share drafts;
- 1.1%, money market accounts and
- 1.1 %, one-year certificates
- 0.3%, regular shares, and
- 0.3%, individual retirement accounts
Credit union delinquencies continue to remain low at 0.7% in April, CUNA reported.