Friday, July 28, 2017

Trends Report: Credit Unions Gain Members, See Loan and Savings Growth

During May, credit unions picked up 408,000 in new memberships, and loan and savings balances grew at an 11.7 percent and 6.8 percent seasonally-adjusted annualized pace, respectively. 

Firms hired 152,000 workers, nominal consumer spending increased 0.1 percent, and long-term interest rates were unchanged. Consumers are feeling confident about their future financial conditions and will keep the economy moving forward through 2018.

At the end of May, CUNA’s monthly estimates reported 5,922 credit unions in operation, four fewer than one month earlier. Year-over-year, the number of credit unions declined by 211, less than the 284 lost in the 12 months ending in May 2016.

Total credit union assets fell 0.1 percent in May, a smaller decline than the 0.4 percent drop reported in May of 2016. Assets rose 7.6 percent during the past year due to a 7.6 percent increase in deposits, a 10.1 percent increase in borrowings, and a 6.3 percent increase in capital.

The nation’s credit unions increased their loan portfolios by 1.1 percent in May, the same pace reported in May 2016. Loan balances are up 10.9 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 79.9 percent, up from 77.5 percent in May 2016.

Credit union memberships rose 0.37 percent in May, similar to the 0.38 percent gain reported in May 2016. Memberships are up 4.4 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.

Read the full report here.