MADISON, Wis. — May's 1.8% membership gain was the strongest increase since 2005 with 294,000 members joining credit unions.
According to CUNA Mutual Group's latest Credit Union Trends Report, May's numbers bring total membership up to an estimated 89.4 million, a gain of more than 1.1.million in the first five months of 2007. CUNA Mutual is forecasting a “conservative” 1.2% annual growth of 89.7 million members by year end, said Dave Colby, chief economist at CUNA Mutual.
“While our estimates may be on the light side, we believe the run-off of indirect borrowers and usual seasonal patterns implies little or no growth in the second half of the year,” Colby said. “In 2005, roughly 97% of membership gains occurred in the first half of the year, in 2006 about 73% of all gains had occurred by midyear.”
Meanwhile, initial estimates by CUNA Economics & Statistics show a net loss of 46 credit unions in May, Colby noted. At 8,535, the year-to-date decline is 127. Colby said in the near term, consolidation will be driven by growth and financial challenges. By the end of the decade, Colby said expect to see 1,300 fewer credit unions, a 15% reduction from the current level barring “no major shocks which significantly change the value of a credit union charter.”
“Over the long-term, the inability to attract volunteers and costs associated with replacing current leadership will exacerbate growth and financial challenges,” Colby said.
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