WASHINGTON – "Not-so-bad" loan growth and negative savings growth pushed credit unions' loan-to-share ratio up over 80% in May, according to CUNA's Monthly Credit Union Estimates.
Loans increased just 1% in May, which CUNA Senior Economist Mike Schenk called "not-so-bad," bringing year-to-date loans outstanding to 2.8% growth. This figure is much lower than last year's 3.6% growth for the same period. "Other" mortgage loans led the way with 3.6% growth followed by credit cards, which grew 1.8%. Delinquencies stayed the same at 0.6% and the capital-to-asset ratio crept up to 11.2% for the month.
During the same period, savings decreased 0.9%. "People are not saving and a lot when they do decide to save put it into money market mutual funds and are looking at some alternatives," Schenk said. He added that it is not unusual for savings to be weak in May, but the year-to-date figure of 1.7% is the lowest CUNA has on record since it began keeping track.
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