CU Performance Through Halloween? Not At All Frightening

MADISON, Wis.--Economic activity increased 3.9% in the third quarter, and credit union loan balances climbed 0.85% during October, according to new data released as part of CUNA Mutual’s Trends Report.

Among the data as of Oct. 31, according to CUNA Mutual (which uses CUNA-compiled data):

  • At the end of October, there were 6,585 CUs in operation, down five CUs from one month earlier. Year to date the number of credit unions declined by 210, below the 236 lost in the first 10 months of 2013 and also 2014. 

  • Credit union savings balances rose an outsized 1.3% in October, and 4.6% year-to-date, due to the month ending on a Friday payday and falling gas expenditures. Year-over-year asset growth of 5.8% is outpacing savings growth due to borrowings rising 19.2%. 

  • The nation’s CUs increased their loan portfolios 0.85% in October, 8.9% YTD and 10.3% during the past year. Member business loan balances rose 3.8% in October, the fastest growing category, followed by adjustable-rate mortgages, 2.3% and new auto loans, 2.2%. 

  • Credit union memberships rose 186,000 in October to reach 101.6 million, a 0.2% increase from September, and 3.3% year to date. Year-over-year, memberships are up 3.6%, the fastest pace since July 2003. With job growth expected to be over 250,000 a month in 2015 and new car sales to reach 17 million units, membership growth will remain strong for the next 12 months. 

  • Credit union capital grew 9.9% during the last 12 months indicating stronger earnings performance for many credit unions. The movement’s return-on- asset ratio rose to 0.88% in the third quarter, up four basis points from the second quarter, due to a 7 basis point increase in asset yields, a three basis point increase in non-interest income, a three basis point increase in operating expenses and a three basis point rise in loan loss provision expense. Credit union capital-to-asset ratio remained at 10.8%, the highest in six years. 

  • Trends5
Section: Standard
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Copyright Year: 2019
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