MADISON, Wis. - Capital levels at CUs across the country have recovered nearly to their fall 2008 highs, according to CUNA monthly survey. A surge in deposits in July helped to bolster the cooperative movement's capital position.
"Credit union capital grew 0.7% to reach $89.037 billion, just shy of the high-water mark reached last November of $90.840 billion," CUNA senior economist Steve Rick said in a statement released by the trade association. "However, the 9.3% asset growth since November has pushed the credit union capital-to-asset ratio down to 9.8% in July from 10.9% last November."
CU savings balances increased by 1% in July and those balances are up 9.5% for the year, much faster than the 5.8% pace in the first seven months of 2008, News Now reported. But loan growth has not increased nearly as much this year, bringing the loan-to-savings ratio down to 76.8% in July, down from 77.5% in June. Outstanding loans did edge up 0.2% in July, led by other loans (2.8%), credit cards (1.3%) and home equity loans (1.0%) but new car, fixed rate and adjustable rate mortgages slid.
"Loan growth has dropped off sharply so far this year as members try to deleverage their balance sheets," Rick said in a statement. "Loans grew only 1% during the first seven months, compared to 4.1% increase for the similar period last year. Fixed-rate first mortgages are the only loan category reporting decent growth, 5.7% so far this year, but the growth still is less than half the pace set last year — 12.4%."
