WASHINGTON–There are three trends worth noting that can be found in CU performance data for the second quarter of 2019, according to Callahan & Associates.
While credit unions grew both sides of the balance sheet during the quarter, the three most noticeable trends in the performance data are, according to Callahan’s:
- Interest rate margins expanded across the industry, allowing credit unions to further invest in “delivering an enhanced member experience.”
- Credit unions rewarded savers with competitive rates. As such, share certificate balances increased almost $50 billion year-over-year, the highest annual growth ever.
- The loan-to-share ratio rose to 83.3% as “consumers increasingly selected credit unions as their preferred lender for consumer and mortgage loans.”
“Mid-year results show that members continue to respond to credit union value,” said Jay Johnson, chief collaboration officer at Callahan & Associates. “Lending activity to members jumped 22% from the first quarter and credit unions rewarded savers with higher rates. These results, combined with recent interest rate movements, indicate the industry is well positioned to help members even more in the second half of 2019.”
Share growth over the past 12 months increased 6.1%, with share certificates accounting for 62% of that accelerated growth, the company noted.