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CU loans continue increase in October CUNA
WASHINGTON (12/6/11)--Credit union loans outstanding increased for the seventh straight month, growing by 0.3% in October, the Credit Union National Association (CUNA) reported in its analysis of October's monthly sample of credit unions.

This loan increase was led by growth in adjustable-rate mortgages, which increased by 1.3%. Used auto loans increased by 0.6%, unsecured personal loans went up by 0.5%, and credit card loans increased by 0.4%, the CUNA report added. However, new auto loans, fixed-rate mortgages, and home equity loans all decreased, falling by 0.1%, 0.2%, and 0.3%, respectively.

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Credit union loans totaled $581.5 billion in October, compared with $584 billion in the previous month, according to the monthly estimate. (See chart)

Overall, credit unions' capital-to-asset ratio remained at 10% during the month. The total dollar amount of capital was $100 billion. CUNA Chief Economist Bill Hampel said the capital ratio results were "good news, considering that credit unions were accounting for the corporate stabilization expenses in October."

Credit union savings balances fell by 0.1% in October, but money market accounts grew by 0.8% and regular shares increased by 0.4%, CUNA reported. Individual retirement accounts and one-year certificates each decreased by 0.2%, and share drafts went down by 2.8%, the report added. Credit union savings balances increased by 1.3% in September.

The credit union system held $836.4 billion in savings in October 2011, an improvement when compared to the $803.1 billion total recorded this time last year. (See chart)

Credit unions' 60-plus day delinquency rate remained at 1.6%, and the loan-to-savings ratio also held steady at 70%.
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On membership, CUNA estimated credit unions added 441,000 new members in September and October -- roughly equal to 75% of total credit union member growth in all of 2010 and a further indication that consumers made significant movement to credit unions in the weeks prior to Bank Transfer Day. Specifically, credit union membership increased 227,000 in September and 214,000 in October.

CUNA also believes about 400,000 new checking accounts were likely opened by credit union members in October.  The combination of new members In October and new checking accounts from existing members puts the total close to the 650,000 estimated in an earlier CUNA pre-Bank Transfer Day survey, which was intended to provide a rapid response and which CUNA now believes likely drew estimates of both members and new accounts based on credit unions' interpretation of the survey question.


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