Sunday, November 8, 2015

Credit Union Trends Report Highlights (October 2015)

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.