Loan-To-Share Ratio Hits 2-Decade High

Published December 10, 2007, 1:00 a.m. EST

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Updated August 27, 2020, 1:30 a.m. EDT

1 Min Read

MADISON, Wis. - Thanks to a combination of accelerated loan growth and flat savings growth, the CU community's overall loan-to-share ratio has hit its highest mark since 1979, according to CUNA. Data show the ratio rose to 84.3% in October from 83.4% in September.

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CUNA analysis indicated the liquidity ratio (ratio of surplus funds maturing in less than one year to borrowings, plus liabilities) dropped to 16.9% in October from 17.8% in September. Credit union loan growth increased 0.9% in October and 7.2% over the past 12 months. Adjustable-rate mortgages led loan growth, increasing 3.6% during October, CUNA said. Savings balances declined 0.2% in October, but have increased 5.5% over the past 12 months. Loan delinquency rates have increased only marginally, with CUNA adding that the credit union movement's overall capital-to-asset ratio is 11.6%, up slightly from September (11.5%). (c) 2007 The Credit Union Journal and SourceMedia, Inc. All Rights Reserved. http://www.cujournal.com http://www.sourcemedia.com

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