As a result of macroeconomic conditions, credit union lending and deposit dynamics changed considerably throughout 2022. In the first half of the year, cooperatives were on a record pace for loan originations in dollar terms, led by consumer lending. However, consumer lending demand slowed in the second half of the year, and high interest rates led to a substantial decline in the pace of the real estate financing market. All told, loan origination dollars declined 3.5% from the record level set in 2021. Despite slowing up-front pipelines, higher interest rates made it more attractive for credit unions to hold loans on balance sheets. Additionally, increasing cost of living brought savings rates down, reducing the pace of both new deposits and early loan paydowns. With the loan-to-share ratio rising and market conditions affecting the sale price of available-for-sale securities, many credit unions are dealing with liquidity pressures. In turn, credit unions are borrowing funds and making their certificates of deposit more attractive in order to meet loan requests.