Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
Recession slowing growth of CU lending
MADISON, Wis. (7/30/09)--The ongoing recession is taking its toll on credit union lending, according to a Credit Union National Association (CUNA) economist’s analysis of CUNA’s monthly sample of credit unions for June. “For the first six months of the year, credit union loan balances rose 0.7%, significantly lower than the 3.1% reported for the same period last year,” Steve Rick, CUNA senior economist told News Now. “Americans are deleveraging their balance sheets by paying down debt or slowing their debt accumulation.
Click to view larger image Click for larger view
“Credit unions should expect the loan portfolio to rise 5% this year, below the past five-year average of 8.4%,” he added. Credit union loans outstanding, which totaled $584.5 billion, increased 0.2% during June. It also increased 0.7% during the first six months of 2009, down from a 3% increase during the same period of 2008. Fixed-rate mortgages led June loan growth, rising 1.5%, followed by credit card loans (1.4%), unsecured personal loans (0.9%), used-auto loans (0.7%), and home equity loans (0.2%). However, during this period, new-auto loans declined (-0.3%), as did other mortgages (-0.6%), other loans (-0.9%) and adjustable-rate mortgages (-1.6%).
Click to view larger image Click for larger view
Credit union savings balances totaled $754.5 billion for June, declining 0.2%, but grew 8.2% during the first six months of 2009. During this period, money-market accounts led savings growth with a 1.5% increase, followed by regular shares, which increased 1.1%. Also during this period, one-year certificates essentially remained constant--increasing less than 0.05%--while individual retirement accounts and share drafts declined 1.1% and 5.6% respectively. “With fears of job losses on the minds of many Americans, the U.S. savings rate rose to 6.9% recently,” Rick said. “Credit union savings balances have responded with an 8.2% rise in the first half, up from 6.4% last year.” Regarding asset quality, credit union 60-plus-day delinquencies declined to 1.5% in June from 1.7% in May. The loan-to-savings ratio decreased slightly to 77.5% in June. The liquidity ratio--the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities-- remained constant at 20%. The movement’s overall capital-to-asset ratio increased to 9.8% in June 2009. The total dollar amount of capital is $88 billion.
Other Resources

RSS





print
News Now LiveWire
Watching #SuperBowlXLIX this Sunday? Look for regional #creditunion #commercials @CltMetroCU @BECU @golden1cu #Seahawks #Patriots
4 hours ago
Philadelphia's American Bakery Workers FCU liquidated by @TheNCUA; @trumarkonline assumes shares
4 hours ago
More branch shutterings by @Citi: 4th-largest bank to close 10% of #Chicago area branches HT @CrainsChicago http://t.co/2vAvgucLY5
5 hours ago
56% struggle with subprime credit scores says @cfed survey HT @washingtonpost http://t.co/RHmMvuhNtw
6 hours ago
How to use social media for crisis communications Feb. 10 webinar from @SBAgov, @AgilityRecovery http://t.co/d16t8RHr7n
6 hours ago