Rates & Ratios: CU Loans on the Rise

Adjustable-rate mortgages continue to increase.

June 14, 2011

Credit union loans outstanding increased 0.2% during April compared to a 0.1% decline in March, according to CUNA’s economics and statistics department.

Leading loan growth were adjustable-rate mortgages, which increased 2%, followed by home equity loans, 1%, used auto loans, 0.8%, and credit cards, 0.1%.

On the decline were fixed-rate mortgages (-1.8%), unsecured personal loans (-1.1%), and new auto loans (-0.7%).

Savings

Credit union savings balances grew 0.7% in April compared to a 1.3% increase during March. Share drafts increased 4.3%, followed by regular shares, 1.1%, individual retirement accounts, 0.2%, and money market accounts, 0.1%.

One-year certificates declined 0.4%.

Other measures during April:

  • Asset quality: Credit unions’ 60+ day delinquencies remained at 1.6%;
  • Liquidity: The average loan-to-savings ratio remained at 69%, and the liquidity ratio (the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities) remained at 19%; and
  • Capital: The movement’s overall capital-to-asset ratio remained at 10%. The total dollar amount of capital is $96 billion.

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