MADISON, Wis.-- Credit union loan balances rose a solid 1.1% in August, slightly better than the 1.0% pace reported in August 2013, according to the newest Trends Report from CUNA Mutual Group. In the last year, credit union loan balances are up 10.0%, the fastest pace since March 2006.
Credit union loan growth year-to-date is up 7.1%, almost equal to the full year loan growth for 2013, noted CUNA Mutual, adding in its analysis, “For the first time since the onset of the great recession, every loan category tracked by CUNA’s monthly survey posted positive growth in August. Financial conditions improved dramatically for many households during the past few years due to falling debt and debt payments and generally rising incomes. The outlook is bright for credit union lending as consumers use increased debt to meet some of their pent up demand without putting undue stress on their finances.”
Other findings from CUNA Mutual:
- * The pace of the credit union movements’ consolidation slowed significantly in the first 8 months of 2014 compared to 2013. At the end of August, CUNA’s monthly estimates reported 6,653 CUs in operation, down 142 CUs since December. This is below the 190 reduction set for the similar time period in 2013.
- * Credit union savings balances in 2014 are rising at the identical pace set in 2013. Savings balances rose 0.8% in August and 4% year to date. Assets rose slightly faster than savings in August, 0.9%, due to a 1.2% increase in capital. Credit union total assets now stand at $1.139 trillion, a 5.1% increase over August 2013.
- * The nation’s CUs increased their loan portfolios 1.2% in August, 7.1% YTD and 10.0% during the past year. Member business loan balances rose 2.4% in August, the fastest growing category, followed closely by new auto loans, 2.38%, and adjustable-rate mortgages, 2%.
- * CU memberships rose 500,000 to reach 101 million in August, a typically strong month for membership growth due to strong auto lending as the new car models are rolled out. Year-over-year, memberships are up 3.2%, the fastest pace since August 2003.
- * The credit union movement continues to strengthen its balance sheet. The $122 billion in net worth translates into a 10.7% net worth-to-asset ratio. The loan-to-share ratio rose to 73.2% in August, a significant improvement from the 69% reported in August 2013.