MADISON, Wis. -
Analysis released by CUNA reveals lending at credit unions was up 1.3% during the month and up 6.7% over the 12 months that ended Aug. 30. Overall, mortgages were the strongest loan category, with fixed-rate mortgages up 3.1% and adjustables improving 2.6%. "Other loans" increased 3.3%. CUNA noted that balances in other mortgages have increased 19% over the past 12 months, followed by credit card loans outstanding (14.9%).
For the past 12 months, consumers have become "less confident than they have been in the past," said CUNA VP-Economics and Statistics Mike Schenk. "They are spending less, borrowing less, and saving more. This is reflected in the 12-month loan growth, which is lower than 12-month savings growth. Typically, when people save more than they borrow, it would be associated with a very slow economy or a recession."
CUNA said that credit union savings balances grew 1% in August, and 7.1% over the past 12 months.
CUNA attributed the monthly increase to a payday falling on the last day of the month.
Other findings: share drafts grew 5.7%, certificates were up 1.1%, IRAs grew 0.7%, and MMAs improved just 0.3%. Regular shares fell 0.8% during August.
The loan-to savings ratio was nearly flat, moving to 82.6% from 82.3% in July. CUNA said the liquidity ratio, the ratio of surplus funds maturing in less than one year to borrowings plus other liabilities, was 18.1% during August, up about 1.5 percentage points from last year.
The overall capital-to-asset ratio decreased slightly to 11.4% from 11.5% in July to 11.4% in August, although the total actual dollar amount grew.
