MADISON, Wis.—Loans at credit unions grew by 0.6% in November, according to the latest monthly estimates from CUNA.
Home equity loans were the main driver of the increase, rising by 1.5%, followed by unsecured personal loans (1.4%), new auto loans (1.1%), credit card loans (1%), fixed-rate first mortgages (0.5%) and adjustable-rate mortgages (0.4%).
“Our November credit union estimates are consistent with the continued improvement of the U.S. economy. Better economic conditions are boosting consumer confidence leading to an increase in consumer borrowing and spending as reflected in our November estimates,” said Perc Pineda, senior economist at CUNA.“Credit union loans outstanding increased 0.6% in November, up 9.3% since January 2015.”
While loans grew savings balances declined 0.2% last month, compared to a 1.5% increase in October.
“Savings growth year-to-date ending November came in at 5.6%. That is well above our forecast of a 4.8% savings growth in 2015,” Pineda said.
Share drafts managed the highest deposit increase (0.9%), followed by one-year certificates (0.2%). Regular shares (-1.0%), money market accounts (-0.3%) and individual retirement accounts (-0.02%) all declined last month, CUNA reported.
CU memberships grew 0.4% in November to 105 million.
“From a year ago, memberships are up 3.8% close to our forecast of a 3.9% increase in memberships in 2015,” Pineda said.
The loan-to-savings ratio increased from 77.1% in October to 77.7% in November. CU’s capital-to-asset ratio remained at 10.8% in November, with total dollars coming in $131.5 billion.