MADISON, Wis. -
But don’t look for that trend to continue in 2008.
The loan-to-share ratio is at its highest year-end point since the 1970s. The liquidity ratio–the ratio of surplus funds maturing in less than one year to borrowing, plus other liabilities–remained at 18% during December, CUNA said.
CUNA Senior Economist Mike Schenk is projecting that the problems in the housing market and other overall economic weakness suggest that this year will be a slow one for loan growth.
During December, outstanding loans at CUs increased 0.6%, ending the year with a 7.6% increase. Credit card loans outstanding increased 4.1% for the month, adjustable-rate mortgages (2.5%), unsecured personal loans (1.1%), fixed rate mortgages (0.9%), and other mortgages (0.7%), according to CUNA. Shrinking during December were other loans (down 2.5%), new-auto loans (down 0.3%), and home equity loans (down 0.1%).
Credit union loans outstanding increased 0.6% in December, ending the year with a 7.6% increase.
Credit card loans outstanding increased 4.1% for the month, followed by adjustable-rate mortgages (2.5%), unsecured personal loans (1.1%), fixed-rate mortgages (0.9%), and other mortgages (0.7%).
Declining during the month were other loans (2.5%), new auto loans (0.3%), and home equity loans (0.1%).
Members’ savings at credit unions declined 0.2% in December, but increased 4.8% overall in 2007. Share drafts (4.6%) and regular shares (1.2%) declined, while individual retirement accounts (1%), certificates (0.8%), and money market accounts (0.8%) increased, CUNA said in its analysis.
Other findings:
* Total savings balances ended the year at $650 billion.
* CUNA is forecasting loan growth of 5% and savings growth of 9% in 2008.
* Delinquency increased only 0.27 percentage points from a year ago despite the weaker economy–to 0.95% in December 2007.
* The overall capital-to-asset ratio remained at 11.5% in December.
