Friday, November 20, 2015

Credit Union Trends Report Highlights (November 2015)

We have issued our Credit Union Trends Report for November 2015 (based on September 2015 data). See the highlights below, or click here for the full report.

  • During September, credit unions picked up 477,000 in new memberships, loan balances grew at a 10.5% annualized pace, savings balances rose 0.2%, firms hired 137,000 workers, nominal consumer spending increased 0.1%, and long-term interest rates increased 2 basis points. Third quarter economic growth came in at 1.5% and grew 2% from the third quarter of 2014.
  • At the end of August, CUNA’s monthly estimates reported 6,300 CUs in operation, down 29 credit unions from one month earlier. Year-over-year, the number of credit unions declined by 292, more than the 272 lost in the 12 months ending in September 2014.
  • Total credit union assets rose 0.1% in September, faster than the -0.8% decline reported in September of 2014. Assets rose 6.4% during the past year due to a 5.7% increase in deposits, a 17.1% increase in borrowings, and a 7.5% increase in capital.
  • The nation’s credit unions increased their loan portfolios by 1.2% in September, more than the 0.8% pace reported in September 2014. Loan balances are up 11.0% during the last 12 months. September is historically the month where seasonal factors have little to no effect on trend growth.
  • Credit union memberships rose a robust 0.46% in September, up from a 0.3% gain reported in September 2014. Memberships are up 3.9% during the past year due to robust demand for credit, solid job growth and comparatively lower fees and loan interest rates.
  • Credit union capital-to-asset ratios rose to 10.9% in September, up from 10.8% reported one year ago. Credit union loan delinquency rates fell to 0.73% in September, down from 0.85% 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