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Credit union car loans rolled into a ditch in December as balances fell from November to December at the biggest rate in at least 10 years, according to the latest monthly report from America's Credit Unions.
Monthly Credit Union Estimates from America's Credit Unions also showed a continuing slowdown in overall loan growth, while savings improved to nearly the average rate. The result was the first drop in the loan-to-savings ratio since February 2022.
The report, previously issued by the trade group formerly known as CUNA, showed credit unions held $1.63 trillion in total loans, up 6.7% from a year earlier and up 0.3% from November, far slower than the average November-to-December gain of 0.7% from 2016 through 2022.
Above-average 12-month growth came from credit cards (+10.5%), personal term loans (+12.3%) and home equity lines of credit and other second liens (+25%). First mortgages continued growing at below-average rates (+4.4%), but cars held up the rear at 2.7%.
Total car loans were $506.4 billion on Dec. 31, down 0.7% from November, compared with an average December gain of 0.6%. Since 2013 the next biggest one-month drop was 0.6% from March to April 2020, the month after COVID-19 was declared a pandemic and dealerships shut down.
New car loans were $178.1 billion on Dec. 31, down 0.6% from November, compared with an average December gain of 0.8%.
Used car loans fell 0.7% to $328.3 billion from November, compared with an average December gain of 0.4%.
The report covered 4,785 credit unions — 178 fewer than a year earlier and one less than November. Credit union members were 142 million at year's end, up 3.1% from a year earlier, and up 0.1% from November, compared with an average December gain of 0.3 percentage points.
The report also showed:
- Unsecured consumer term loans grew 0.9% to $72.6 billion from November, compared with an average December gain of 0.1%.
- Credit cards grew 1.8% to $82.6 billion from November, slower than the average December gain of 2.2%.
- First-lien mortgages grew 0.6% to $586.4 billion from November, compared with an average December gain of 1.3%.
- Second-lien mortgages grew 1.5% to $135.6 billion from November, compared with an average December drop of -0.1%.
- Savings were $1.91 trillion, up 1.8% from a year earlier and rose 0.7% from November, compared with an average December gain of 0.8%.
- The loan-to-savings ratio was 85.4% as of Dec. 31, compared with 81.5% a year earlier and 85.7 % a month earlier.
- Assets were $2.29 trillion, up 4.1% from a year earlier and up 1% from November, compared with an average December gain of 0.5%.
- Borrowings and other liabilities were $171 billion, up 32.3% from a year earlier and up 2.2% from November.
- The 60-day-plus delinquency rate was 0.78% as of Dec. 31, up from 0.61% a year earlier and 0.77% a month earlier.
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