MADISON, Wis. - The credit union industry’s loan-to-savings ratio decreased slightly to 84.4% during January from 84.6% in December as savings outpaced loans, according to analysis by CUNA. The liquidity ratio rose to 18% in January from 17% in December.
CUNA Senior Economist Steve Rick said in a released statement, “This indicates there will be a slight easing of liquidity pressure on credit unions. We expect this trend to play out through 2008. It will be another factor pushing down credit union earnings this year.”
Credit union savings balances increased 0.43% in January 2008, the fastest January savings growth since 2004, CUNA said. Regular share accounts declined 1.8% in January and 7.4% over the last year, the group said.
On the other side of the balance sheet, real estate lending was the only category to grow during January, with fixed-rate mortgages, increasing 1.74%. Fixed-rate mortgages are up 17.4% over one year earlier.
Loans overall were up 0.2% in January 2008, compared with a slight decline in January 2007, CUNA said. The fastest growing loan category was “other loans,” up 4.2%, with home equities up 1.7%. Credit card loans outstanding decreased 1%, with new auto loans down 0.8%.
CUNA’s Rick said 60-plus day delinquencies increased to 0.99% in January from 0.95% in December.
The credit union movement’s overall capital-to-asset ratio remained at 11.5% in January.
