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CU System
Monthly CU survey indicates double-digit loan growth
MADISON, Wis. (6/4/14)--Credit unions continued to experience solid loan growth in April, as year-to-date increases head toward double digits, according to the Credit Union National Association monthly credit union estimates released Tuesday.  
 
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Loans outstanding rose by 1% in April, bringing growth for the year to 2.4% and 8.9% over the past 12 months. The year-to-date growth rate of 2.4% is the strongest since 2005. The National Credit Union Administration released first-quarter numbers Tuesday, which show an 8.8% year-over-year increase in outstanding loan balances. (See related story: NCUA Q1 report highlights CU loan, membership growth.)

Adjustable-rate mortgages led loan growth, rising 4.4%, followed by unsecured personal loans at 1.9%, new and used-auto loans (both 1.8%), home-equity loans and other mortgages (both 0.8%), and credit card loans (0.4%). On the decline were fixed-rate first mortgages (-1.4%).
 
"If loans growth continues to accelerate, we could see double-digit growth for the year, and it's nice balanced growth across the portfolio," said Bill Hampel, CUNA chief economist and senior and senior vice president of policy and analysis.

In the first three months of the year, the credit union share of consumer credit outstanding inched up to 8.7% from 8.6%. 
 
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Savings fell by 0.5% in April, bringing growth for the year to 3.2%, and 3.7% over the past 12 months.  The 3.2% growth for the year-to-date is consistent with the modest savings growth recorded over the past several years and suggests full year growth won't be much more than 5%, Hampel noted.
 
Credit unions are not the only institutions experiencing soft savings growth as the credit union share of the household savings market is up slightly in the first four months of the year, to 9.7%. from 9.6%
 
The net capital-to-asset ratio rose during April to 10.5% from 10.4% while the loan delinquency rate was unchanged at 0.9% of loans outstanding. 
 
Total membership in credit unions rose by 0.2% to 99.6 million, bringing memberships very close to the 100-million milestone. "Membership growth of 2.9% over the past year is very strong, and suggests more and more Americans are choosing credit unions as their best financial partner," said Hampel.


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