Credit Union Loan Growth Slowed Again in 2018
CUNA estimates show smaller increases for auto and real estate loans.
The first crop of credit union numbers for December show that the movement’s fast loan growth slowed for the second year in a row in 2018, including both cars and real estate.
CUNA’s Monthly Credit Union Estimates show credit unions’ total portfolio of automobile loans was $373.7 billion on Dec. 31, up 10.6% from the end of 2017. Real estate loans rose 8.2% to $521 billion.
The growth rate for cars has dropped about 1 percentage point a year over the past two years, while real estate growth rose from 8.6% in 2016 to 9.5% in 2017 before dropping last year.
Cars accounted for 35% and real estate 49% of the $1.07 trillion portfolio included in CUNA’s Feb. 4 estimates. Total loan growth was 9.1% in 2018, down from 10% in 2017 and 10.4% to 10.5% for the previous two years.
The Fed’s G-19 Consumer Credit Report released Thursday also showed a slowing of borrowing. Total consumer debt was $4 trillion in December, up 4.7% from a year earlier. Last year’s increase tapered off from a 5% gain for 2017 and 6.8% for 2016.
All lenders held $1.2 trillion in car loans on Dec. 31, up 3.7% from a year earlier. Gains were 3.5% in 2017 and 7.6% in 2016.
Banks followed a similar trend with consumer loans growing 3.9% to reach $1.67 trillion in December, compared with gains of 5.2% in 2017 and 7.3% in 2016.
The G-19 report also showed credit unions held $62.6 billion in credit card debt in December, up 7.2% from a year earlier. Growth was 10% in 2017 and 7.4% in 2016. Banks held $936 billion in credit card debt in December, up 3.6% from a year earlier.
U.S. consumer debt in December included $1.6 trillion in public and private student loans, up 5.3% from a year earlier.
The 5,625 credit unions in the CUNA report had 118.8 million members in December, up 4.6% from a year earlier. CUNA also estimated:
- Assets grew 5.4% to $1479.4 billion.
- Savings grew 5.4% to $1244.8 billion.
- Capital grew 8.3% to $162.3 billion.
- New auto loans rose 12.3% to $150.5 billion.
- Used auto loans rose 9.7% to $223.1 billion.
- Unsecured loans rose 7% to $106.8 billion.
- Fixed-rate first mortgages rose 7.6% to $306.4 billion.
- Adjustable-rate first mortgages rose 11% to $124.9 billion.
- Second mortgages rose 9.1% to $33.1 billion.
- Home equity lines of credit rose 5.2% to $56.6 billion.