WASHINGTON—CU lending continued its strong growth in August, according to CUNA’s Monthly Credit Union Estimates.
Credit union loans outstanding grew 1.1% in August, following a 0.9% increase in July. Unsecured personal loans led August loan growth, rising 2.1%. Adjustable-rate mortgages were up slightly to 0.5%. Other mortgage loans bumped higher 0.4%, CUNA reported.
However, the news comes as one analyst notes again that the overall numbers are hiding painful reality in credit unions—large CUs are performing well, while the rest of the industry struggles.
New and used auto lending remains strong increasing 1.6% and 1.2%, respectively in August. “Credit unions continue to experience double digit auto lending over the previous 12-month period,” said Perc Pineda, CUNA senior economist.
Pineda also noted that weak August retail sales, which fell 0.30% after four consecutive months of increases, are reflected in credit card loan growth at credit unions.
“In August, credit card loan growth was 0.79%, lower than the 1.0% and 1.1% increase in June and July, respectively when retail sales were upbeat,” Pineda said. “Still, credit card loan growth at credit unions went up 6.7%, from August last year.”
New and used auto lending remains strong increasing 1.6% and 1.2%, respectively in August. “Credit unions continue to experience double digit auto lending over the previous 12-month period,” Pineda said.
Although home sales were weaker in August compared with July, fixed mortgage lending at credit unions rose 1.2% and adjustable mortgage lending rose 0.51%. Home equity loans increased 1.3%, CUNA reported. “Both fixed and adjustable mortgage lending rose 8.25% and 11.6%, respectively from a year ago--consistent with a housing market that continues to recover,” Pineda said.
Credit union savings balances declined 0.1% in August, compared with a 0.5% increase in July. One-year certificates led savings growth, rising 1.1%, followed by share drafts and money market accounts (both rising 0.8%), and individual retirement accounts (0.03%). Regular shares declined 1.3% during August.
“In August credit union savings balances growth was softer than in July, but from a year ago, it went up 7.3,” said Pineda.
Total credit union memberships grew 0.5% during August to 108.1 million, CUNA said.