Tuesday, August 28, 2018

August 2018: Credit Union Trends Report

Our Credit Union Trends Report for August 2018 is now available online. The report covers data from June 2018 and includes details on credit union memberships, loans, savings and more.  
Highlights include the following:  

  • During June, credit unions picked up 460,000 new memberships, loan balances grew at a 10.1 percent annualized pace, vacation spending and car purchases reduced the savings rate, firms hired 248,000 workers, nominal consumer spending increased 0.4 percent and long-term interest rates fell 7 basis points. Second quarter economic growth came in at 4.1 percent, better than the 2.2 percent in Q1. 
  • At the end of June, CUNA’s monthly estimates reported 5,714 CUs in operation, down 8 CUs from one month earlier. Year-over-year the number of credit unions declined by 228, more than the 184 lost in the 12 months ending in June 2017. 
  • Total credit union assets rose 1.6 percent in June due to the month ending on a payroll Friday. Credit unions picked up an additional $3.4 billion in wholesale borrowings. Assets rose 6.5 percent over the past year due to a 5.6 percent increase in deposits, a 5.8 percent increase in capital and a 29 percent increase in borrowings. 
  • The nation’s credit unions increased their loan portfolios 1.3 percent in June, slightly more than the 1.1 percent pace reported in June 2017 and 10.2 percent during the last 12 months. June is historically the month reporting the fastest loan growth as the summer car buying season begins in earnest. 
  • Credit union memberships rose a robust 0.4 percent in June, below the 0.48 percent gain reported in June 2017. Memberships are up 4.1 percent over the past year due to rapid job creation and strong demand for new and used auto loans. 
  • Credit union loan delinquency rates fell to 0.64 percent in June, down from 0.74 percent one year earlier due to a stronger economy and double-digit loan growth. As the labor market approaches full employment, the delinquency rate will decline even further. 

    For more information, view the full report here.