Credit unions saw strong long-term loan growth in July, but an "abysmal, essentially nonexistent" increase in savings, continuing a trend that began to appear during the first few months of the year, says CUNA Chief Economist Bill Hampel as he discussed the association's Monthly CU Estimates.

Hampel noted that in an unusual development, savings growth at credit unions was lagging behind that at banking and savings institutions. Savings levels at credit unions were up only 2.1% for the year as of July and virtually all of that growth took place in January and February. Also, credit unions' share of the household savings market declined in July to 9.7% down from 9.9%.

On the lending side, NCUA Call Reports figures and CUNA's numbers showed good news. The agency reported a 9.8% annualized loan growth rate and a declining trend in delinquent loans for the first six months of the year.

And CUNA reported continued strong increases of 1.4% in July in loan growth for credit unions, which would represent a 6% annual growth rate if sustained. New auto loans led loan growth, rising a dramatic 3%, followed by a 2.7% increase in second mortgage loans, a 1.6% rise in home equity loans as well as in unsecured personal loans, and a 1.2% increase in the category labeled Research & Statistics "other" loans.

Research & Statistics

Copyright Credit Union National Association, Inc. Sep 12, 2005
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