MADISON, Wis. – Another $6 billion of new savings flowed into credit unions in May, putting 2009 on pace for one of the best years of credit union share growth, according to CUNA.
Through the first five months of the year $50.8 billion of new savings poured into credit unions, a 7.3% growth rate.
But savings growth, always its highest in the first half of the year, is expected to slow in the remainder of 2009, according to Bill Hampel, chief economist for CUNA, who is still predicting double-digit growth for the year. He attributed the surge in credit unions savings to the miserable returns in the stock market and the increase in federal deposit insurance coverage to $250,000 per account.
The growth in savings has had two major affects on the balance sheets. It has also swelled assets; and it has diluted capital.
On the others die of the balance sheet, loan growth has been languid, just 0.2% for May, and a mere 0.5% for the first five months of the year.
Loan delinquencies continued to rise in May, with loans 60 days or more late climbing to 1.7%, it’s highest since the recession of 1991.
