MADISON, Wis.—Membership and loan growth at credit unions continued their steady March forward in July, according to CUNA.
The trade association’s monthly estimates for July show that memberships rose 0.4% (500,000 members) in July to bring the movement’ total to 103.9 million.
“This is the ninth consecutive month of above 3% yearly growth in memberships,” Perc Pineda, CUNA senior economist, told CUNA’s News Now. “We estimate half-a-million members were added in July from June.”
Loan growth maintained its strong pace, exceeding 10% annual growth for the 10th straight month. Monthly loan growth increased by 1% overall in July behind 2.3% growth in unsecured personal loans and adjustable-rate mortgages. Home-equity loans (2.2%), used auto loans (1.9%), new auto loans (1.5%), and credit card loans (0.5%) also grew, CUNA noted.
“We expect this trend of solid loan growth to continue, reflecting sound U.S. economic fundamentals,” Pineda said.
Delinquency rates continued to decline, dropping to 0.6% from 0.7% for the month. The capital-to-asset ratio also declined for credit unions, falling to 10.7% from 10.8%.
Savings balances increased by 1% after a 0.1% uptick in the previous month, paced by share drafts (6.3%).
“As more Americans are employed and credit union memberships increase, predictably, savings balances at credit unions climb higher,” Pineda told CUNA’s News Now. “This was evident in July when savings balances increased dramatically by 12% compared with 1.2% in June on an annualized basis.”