MADISON, Wis.-The data is increasingly making it likely that 2011 will be a year of negative loan growth.
Numbers released by CUNA last week showed loans at credit unions rose just 0.3% during August, which was just a tick more than July's 0.2% increase. Not surprisingly, ARMs led the way with a 1.4% increase, followed by unsecured personal loans (1.1%) and used auto loans (0.9%). Credit card loans climbed 0.5%, while home equity loans went up 0.3%, CUNA said. New auto loans decreased 0.4%, and fixed-rate mortgages declined 1%.
CUNA Senior Economist Steve Rick said the trade group is projecting lending will grow 3% in 2012.
On the savings side, balances decreased 0.5% in August, compared with a 0.2% increase in July. Regular shares grew 2.2%, followed by IRAs (0.5%), one-year CDs (0.2%). MMAs and regular shares decreased 2.9% and 4.5%, respectively.
Overall, CU savings were $827.1 billion at the end of August, up $32.2 billion over one year ealier.
Other numbers:
• CU 60-day delinquencies remained at 1.6%.
• The industry loan-to-savings ratio remained at 70%.
• Overall capital-to-asset ratio remained at 10%.
