Friday, July 29, 2016

Credit Union Memberships and Loans Continue to Grow

Credit union loan balances and memberships continue to grow. That's according our Credit Union Trends Report for July 2016 (based on May 2016 data).

The report offers an economic outlook for credit unions and their leaders, and you can review the full details 
here. Or, see the highlights below:


  • During May, credit unions picked-up 431,000 in new memberships, loan and savings balances grew at an 11.9 percent and 6.7 percent seasonally-adjusted annualized pace, respectively. Firms hired 11,000 workers, nominal consumer spending increased 0.4 percent, and long-term interest rates increased 11 basis points. Consumers are feeling confident about their future financial conditions and will keep the economy moving forward through 2017.
  • At the end of May, CUNA’s monthly estimates reported 6,126 credit unions in operation, 2 fewer than one month earlier. Year-over-year, the number of credit unions declined by 291, more than the 260 lost in the 12 months ending in May 2015.
  • 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.