New CUNA Mutual Group CU Trends Report Shows Continued Membership, Loan Growth
August 2, 2016
August 1, 2016
The Credit Union Trends Report for July, by CUNA Mutual Group, shows continued positive movement for credit unions with regard to memberships (up 431,000) and growth in loan and savings balances (plus 11.9 percent and 6.7 percent seasonally-adjusted annualized pace, respectively). Additional highlights include:
- Total credit union assets fell -0.1 percent in May, slower than the 0.9 percent gain reported in May of 2015. Assets rose 7.0 percent during the past year due to a 6.9 percent increase in deposits, an 18 percent increase in borrowings, and a 6.4 percent increase in capital.
- The nation’s credit unions increased their loan portfolios by 1.0 percent in May, faster than the 0.9 percent pace reported in May 2015. Loan balances are up 11.0 percent during the last 12 months. With loan balances growing faster than savings, credit union liquidity is tightening up as the credit union average loan-to-savings ratio reached 77.6 percent, up from 74.8 percent in May 2015.
- Credit union memberships rose 0.4 percent in May, up from the 0.33 percent gain reported in May 2015. Memberships are up 4.3 percent during the past year due to robust demand for credit, solid job growth and credit unions having comparatively lower fees and loan interest rates.
- Credit union loan delinquency came in at 0.72 percent in May, below the 0.74 percent reported in May 2015. Delinquency rates typically reach their lowest point in the 2nd quarter of a year, so expect the ratio to begin rising in the second half of 2016.
View the full report here, which offers an economic outlook for credit unions and their leaders.