We recently released our Credit Union Trends Report for October 2015 (based on August 2015 data). You can see highlights from the report below, or click here for the full report.
- During August, credit unions picked up 573,000 in new memberships, loan balances grew at a 9.9% annualized pace, savings balances fell 0.5%, firms hired 136,000 workers, nominal consumer spending increased 0.4%, and long-term interest rates fell 15 basis points. Second quarter economic growth was revised up to 3.9%, better than the 0.6% in Q1.
- At the end of August, CUNA’s monthly estimates reported 6,329 CUs in operation, down one credit union from one month earlier. Year-over-year, the number of credit unions declined by 326, more than the 226 lost in the 12 months ending in August 2014.
- Total credit union assets fell 0.2% in August as July’s 6.3% surge in share draft deposits, due to July ending on a payroll Friday, were spent by members. Assets rose 5.4% during the past year due to a 4.7% increase in deposits, a 19% increase in borrowings, and a 6.6% increase in capital.
- The nation’s credit unions increased their loan portfolios by 1.2% in August, slightly more than the 1.1% pace reported in August 2014. Loan balances rose 10.5% during the last 12 months. August is historically the second fastest loan growth month due to seasonal factors: car purchases and vacation spending.
- Credit union memberships rose a robust 0.55% in August, up from a 0.32% gain reported in August 2014. This is the fastest growth rate since March 2005, the last credit boom. Memberships are up 3.7% during the past year due to robust demand for credit, solid job growth and comparatively lower fees and loan rates.
- Credit union capital-to-asset ratios rose to 10.8% in August, up from 10.7% reported one year ago. Credit union loan delinquency rates fell to 0.74% in August, down from 0.84% one year earlier due to a stronger economy and double digit loan growth. Expect both credit unions and bank to loosen credit standards in 2016.
