WASHINGTON—An increase in both member loan balances and savings can be seen in data released as part of CUNA’s August Monthly Credit Union Estimates.
The CUNA data show credit union loan balances increased in August by 1.0%, compared to a 0.8% increase in July of 2021 and a 0.3% increase in August of 2020. Fixed-rate mortgages led loan growth during the month, rising 1.4%, followed by unsecured personal loans (1.3%), used auto loans (1.2%), credit card loans (0.9%), and home equity loans (0.1%).
On the decline during the month were other mortgage loans (-1.3%), adjustable-rate mortgages (-0.8%), and new auto loans (-0.1%).
Credit union savings balances increased 0.1 % in August, compared to a 1.2% increase in July of 2021 and a 0.3% increase in August of 2020. Money market accounts led savings growth during the month, rising 1.7%, followed by regular shares (0.2%), CUNA reported.
On the decline during the month, according to the Monthly CU Estimates, were share drafts (-1.1%), one-year certificates (-0.9%), and individual retirement accounts (-0.1%), CUNA reported.
Credit unions’ 60+ day delinquency remained at 0.5% in August.
Loan To Savings Ratio Up
The loan-to-savings ratio increased to 70.4% in August from 69.9% in July. The liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) declined to 21.7% in August from 22.0% in July to 21.7%, CUNA said.
Total credit union memberships grew 0.2% during August to 130.2 million.
The movement’s overall capital-to-asset ratio increased from 10.0% in July to 10.1% in August. The total dollar amount of capital increased by 1.0% to $206.7 billion, CUNA’s Monthly Estimates show.