MADISON, Wis.-Credit unions are showing a "healthy'"5.2% annual growth in lending, according to a new analysis of Q1 data by CUNA Mutual Group's Trends Report.
Nevertheless, the overall loan-to-share ratio, 57.1%, remains at its lowest point since 1994.
Overall, at the end of March total CU loans were $617 billion. Vehicle loans, fixed-rate first mortgages and credit cards continue to be the biggest drivers. CUNA Mutual is forecasting loan growth will top 6% by year-end. Growth is forecast to top 6.0% by year-end.
Other findings:
* There was a net reduction of 61 CUs in the first quarter of 2013 and the loss of 269 CUs since March 2012. CUNA estimates show 7,009 CUs at the end of March. "Our current forecast calls for consolidation rates to increase, averaging 310 through 2018," CUNA Mutual said. "This implies a 26% decline in the CU count from the end of 2012."
* Member savings were up 1.8% in March with most of the increase in regular shares. "Annual growth is now 5.3%, despite falling deposit yields. Extremely high industry liquidity and a low interest rate forecast imply rates paid on deposits will not move higher for at least 18 months."
* At $1.080 trillion, total system assets are $58 billion (5.6%) above this time last year.
* At 96.7 million, membership is up 686,000 in the first three months of 2013 and 2.0 million since March 2012.
* CU capital increased 8.4%, but the capital-to-asset ratio fell to 10.2% due to the first quarter deposit surge. Overall, it is up 27 basis points since March 2012. "Causing significant concern is the loan-to- asset ratio at 57.1%, the lowest level since mid-1994," noted CUNA Mutual. "The loan delinquency rate fell to 1.034% and further improvements are expected."
