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California: Latest credit union trends

Local activity reflects current economy

ONTARIO, CA (June 30, 2017) — How 11 million credit union members in California are spending their money on homes, remodeling projects, new and used automobiles, higher education, surviving life events and other big-ticket items provides a key barometer into what’s happening across the local economy.

According to the 1st Quarter Credit Union Trends Report for California which represents 324 credit unions headquartered across the state, consumers of all ages are making money decisions in the current environment that are consistent with expanding job-growth and economic trends when compared to history.

This two-page quarterly report reflects year-over-year trends in local loans and deposits and is published by the California Credit Union League. Local consumers who are members of California-based credit unions:

  • Continue taking on first-mortgages to purchase or refinance homes. First-mortgages rose 14 percent, hitting a record $58 billion. (This may include fixed-rate, adjustable-rate, purchase, traditional refinance, and cash-out refinance mortgages)
  • Are turning home equity into cash for remodeling or other large purchases. Home Equity Lines of Credit (HELOCs) and second-mortgages rose 3 percent, reaching $9.9 billion—an amount not seen since 2012.
  • Have slid into the driver’s seat of a newer car or truck more often. Used auto loans rose 16 percent, hitting a record $19 billion. New auto loans rose 30 percent, hitting a record $16 billion.
  • Remain true to the habit of paying for life through their credit cards. Credit card lending rose 7 percent, hitting a record $5.4 billion.
  • Are trying to save more money and increasingly using credit unions to transact purchases/bill-pay. Total deposits rose 11 percent, hitting a record $156 billion (including record individual amounts in checking, savings, and money market accounts).

News Media and Other Contacts

For questions, contact Matt Wrye, media relations manager for the California Credit Union League (909-212-6043). For commentary on the local, state or national economies, contact Dwight Johnston, chief economist for the California Credit Union League (909-215-3657).

About California Credit Union League

Headquartered in Ontario, California, the League exists to help credit unions change people’s lives by supporting their operations, guidance, strategy and philosophy. Our trade association helps more than 260 local credit unions in California serve 13.3 million members and manage $285 billion in assets.

Contacts

Matt Wrye

Senior Communications Manager
California Credit Union League

1-909-851-3935 or mattw@ccul.org

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