Thursday, April 27, 2017

Latest Credit Union Trends Report Shows Membership and Loan Portfolio Growth

Credit unions are gaining members and growing loan portfolios according to our latest trends report. The economic outlook published today, and highlights include the following:

  • During February, credit unions picked-up 538,000 in new memberships, loan and savings balances grew at a 12.8 percent and 8.4 percent seasonally-adjusted annualized pace, respectively. Firms hired 235,000 workers, nominal consumer spending increased 0.1 percent, and long-term interest rates decreased 1 basis point. Real GDP growth is expected to accelerate to 2.3 percent in 2017, faster than the 1.6 percent pace reported in 2016.

  • At the end of February, CUNA’s monthly estimates reported 5,977 CUs in operation, 9 fewer than one month earlier. Year-over-year, the number of credit unions declined by 242, more than the 241 lost in the 12 months ending in February 2016.

  • Total credit union assets rose 1.9 percent in February, above the 1.4 percent gain reported in February of 2016. Assets rose 7.9 percent during the past year due to a 7.5 percent increase in deposits, a 28 percent increase in borrowings, and a 5.7 percent increase in capital.

  • The nation’s credit unions increased their loan portfolios by 0.5 percent in February, faster than the 0.1 percent pace reported in February 2016. Loan balances are up 11.5 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 79.5 percent, up from 76.7 percent in February 2016.

  • Credit union memberships rose 0.49 percent in February, up from the 0.33 percent gain reported in February 2016. Memberships are up 4.3 percent during the past year due to robust demand for credit, solid job growth and comparatively lower fees and loan interest rates.

  • Credit union loan delinquency rates rose to 0.84 percent in February, above the long-run “natural rate” average of 0.75 percent. Expect the rate to fall in March due to tax refunds and bonuses allowing some members to catch-up on late loan payments.
Click here to access the full report via