The dynamics of the share portfolio in third quarter 2018
Share certificates at credit unions are on track to post the highest growth of any deposit account.
Consumer confidence in the marketplace remained high in the fall of 2018, and the spending habits of credit union members reflect that. Third quarter loan growth is on track to outpace share growth by 4.5 percentage points, according to available performance data representing more than 99% of the industry’s assets.
Callahan & Associates projects share growth among the nation’s credit unions will decelerate for a second consecutive year. It is currently on pace to drop 1.5 percentage points year-over-year to 5.2%.
Still, balances have increased across all share types except IRA and Keogh accounts. The growth for that account code is down 0.5% over the year to $78.6 billion. Share certificates are on track to increase 9.2% year-over-year, and balances are set to reach $230.3 billion as of Sept. 30, 2018. The third quarter growth rate in share certificates is 39 basis points faster than one year ago. This is the highest certificate growth since the first quarter of 2008 and is the only accelerated annual growth in the share portfolio.
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