MADISON, Wis.—Despite record loan originations in 2013, vehicle lending volumes not seen since the turn of the century and a continued surge of new members, the big picture isn't entirely rosy for the nation's credit unions.
That's one of the major takeaways from CUNA Mutual Group's latest "Credit Union Trends Report," which includes data for all of 2013.
Among the highlights of the report were a record membership gain of 2.8 million new members, a 10.5% capital ratio, and loan growth of 6.8% ($42 billion)-the industry's best result since 2006. New vehicle loans and fixed-rate first mortgages accounted for most of that loan growth.
But the report also noted that the movement finished the year with 272 fewer institutions, for a total of fewer than 6,800 CUs nationwide today. Furthermore, CUNA Mutual forecasts that the number of disappearing CUs will increase each year in the next few years.
Other highlights from the report:
*While total assets were up by 4.1% during 2013 to a total of $1.09 trillion, annual savings and asset growth rates were about two points below 2012 levels, and the slowest since 2006.
*Member business lending rose by 7.4%, accounting for 8% of total loan growth, despite only representing 7% of total credit union loans.
*Combined second mortgage/home equity portfolio dropped by 3.5%, though the contraction rate has slowed significantly. Total real estate secured loans were up by 5.4% for the year.
*Credit card lending at CUs expanded by 6.5% last year, while the rest of the market was only up by 1.5%. Credit unions now hold 5% of the $862 billion credit card lending market, up 29% from the market's December 2008 peak, whereas the rest of the market (non-CUs) is still down by 16%.
*Vehicle lending grew by 9.6% for the year, but that figure is down from a peak of 10.2% to 10.5% annual gains reported in August through November. Still, total CU vehicle lending has risen by 18.5% during the last two years.
