Over the past year, credit union loan balances are up 5.2%–the fastest annual pace since 2008, according to an analysis by a Credit Union National Association economist of CUNA’s monthly sample of credit unions for April.
“Credit unions reported strong financial performance in April, as well as the first four months of the year,” Steve Rick, CUNA senior economist, told News Now. “Loan balances rose 0.63% in April 2013, compared with 0.57% in April 2012. New- and used-auto loan balances continue to surge with April growth rates of 0.96% and 1.1%, respectively.”
CUNA released its Monthly Credit Union Estimates Tuesday. Credit union loans totaled $621.1 billion in April, compared with $590.3 billion in April 2012. Credit union loans outstanding grew 0.6% in April–the same as in April 2012. Leading loan growth were adjustable rate mortgages (2.1%), unsecured personal loans (1.1%), used-auto loans (1.1%), new-auto loans (1%) and credit cards (0.3%). Fixed-rate mortgages and other mortgage loans declined 1.2% and 0.3%, respectively.
“Despite the recent pick up in loan growth, the average credit union loan-to-savings ratio fell from 67.2% in April 2012 to 67% in April 2013, due to slightly faster growth of savings compared to loans,” Rick said. The ratio was 66% in March.continue reading »