credit union trends report - CUNA Mutual

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11.9% increase in loan balances versus credit unions with assets less than $20 million reported ... big and small credit
CREDIT UNION TRENDS REPORT CUNA Mutual Group – Economics ● September 2014 (July 2014 data)

 At the end of July, CUNA’s monthly estimates reported 6,632 CUs in operation. The loss of 14 CUs in July brought the YTD decline to 163 CUs, slightly less than the 168 year-to-date pace reported in 2013. We have lost 270 CUs in the last 12 months.  Credit union assets rose 0.3% in July, not because of a rise in deposits, which actually fell -0.1%, but because borrowings rose 12% and capital grew 0.4%. Credit union total assets now stand at $1.129 trillion, a 5.1% increase over July 2013. Credit unions will be relying to an ever greater extent on borrowings in 2015 as deposit growth is expected to be the slowest in 10 years at around 3%, while loan balances are expected to increase more than 10%.  The nation’s CUs increased their loan portfolios 1.4% in July, 6.2% YTD and 10.2% during the past year. Credit unions of all asset sizes are now posting positive loan growth numbers but a large disparity remains between big and small credit unions.  CU memberships climbed to 100.5 million in July 2014, a typically strong month for membership growth, as 370,000 more Americans decided to avail themselves of the quality products and services offered by the nation’s credit unions. Year-over-year, memberships are up 2.8 million, or 2.8%, the fastest pace since 2000.  The credit union system’s annualized return-on-asset ratio was 0.83% in the second quarter, according to NCUA call report data, similar to the 0.84% reported in the second quarter of 2013. The additional earnings helped push credit union capital-to-asset ratios to 10.7%, up from the 10.4% reported in July 2013. Credit union loan delinquency rates fell to 0.78% in July, down from 1.02% in July 2013..

ECONOMIC, COMPETITIVE AND REGULATORY ENVIRONMENT The economy generated 212,000 jobs in July as the economy continues to build momentum. Job creation was robust across many sectors and many wage tiers. An improving labor market boosted confidence, leading to a surge in credit union lending and an improvement in credit quality. Consumer spending will accelerate over the next few quarters due to better household balance sheets, low debt burdens and pent-up demand for durable goods. Competition from other financial institutions is rising as banks reported their second-highest profits on record, $40 billion, in the second quarter, 5% more than a year ago. Lower operating expenses, fewer employees, faster loan growth, better credit quality and lower provision for loan losses were the key drivers of their better earnings. Total Lending Credit union loan balances rose a solid 1.4% in July 2014, considerably better than the 1.0% pace reported in July 2013. In the last year, credit union loan balances are up 10.2%, the fastest pace since February 2006. NCUA second quarter call report data shows most credit unions are now reporting positive loan growth. But the growth disparity is rather large. In the last 12 months, credit unions with assets greater than $1 billion reported an 11.9% increase in loan balances versus credit unions with assets less than $20 million reported loan growth of only 1.8%. The Federal Reserve recently reported U.S. household total consumer credit increased at a seasonally adjusted annual rate of 9.75% in July. Revolving credit increased at an annual rate of 7.5%, while non-revolving credit increased at an annual rate of 10.5%.

Credit Union Loan Growth (by Asset size)

14

11.9

12

10.7

10 8.4

Percent

Highlights

8 6.6

6 4.5

4

3.3 1.8

2 0

< $20 mil $20-$50 $50-$100

Figure 1

$100$250

$250$500

$500-$1 bil

>$1 bil

Credit Union Consumer Installment Credit (CUCIC) Credit unions’ consumer installment credit balances rose 13.2% in the last year as the improving labor market, record stock prices and rising home prices have encouraged members to borrow and spend rather than save. Driving this growth is a 15.7% increase in credit union auto lending, a 7% increase in credit card lending and an 11.7% increase in unsecured lending in the last 12 months. This pushed credit unions’ market share back over 9%, the highest since November 2010. Better pricing, easier access to credit and lower and fewer fees have contributed to the rise in credit unions’ market share. With household debt-payments-to-disposable-income ratios at the lowest since 1980, because of historically low interest rates and deleveraging, we expect members’ appetite for debt to continue through 2015.

Growth in Consumer Installment Credit July 2014 Percent

16

CUs 13.2%

12 8

Total Market Excl. CUs 6.6%

4 0

Total Market Excl. CUs & GSLs 3.5%

-4 -8 10 12

11 06

11 12

12 06

12 12

13 06

13 12

14 06

14 12

Source data: CUNA Economics & Statistics and CUNA Mutual Group - Economics

Figure 2 Vehicle Loans Credit union vehicle lending was red hot in July with new-auto balances increasing 2.0%, versus 1.6% in July 2013. Yearto-date new-auto loan balances are up 13.2% and are up a remarkable 19.7% from a year earlier as shown in the right graphic of Figure 3. Used auto loans are also doing well, up 9.3% year-to-date and 13.4% from July of 2013. And since used auto loans make up 63.3% of the $223.7 billion credit union auto loan portfolio, overall credit union loan growth is more affected by used auto loan growth than new auto loan growth. Vehicle sales (cars and light trucks) came in at 16.4 million units in July at a seasonally adjusted annual rate, slightly below the 16.9 million annualrate reported in June. So far this year, vehicle sales are the best since 2006, before the onset of the Great Recession. Light truck sales made up 52% of the market due to falling gasoline prices, new models and a resurgent construction sector. We expect 16.5 million cars sold this year and 17 million in 2015. A risk to auto sales and auto lending is the possibility that pent-up demand for vehicles will be satiated sooner than expected.

Vehicle Lending Growth Comparisons Annual Growth 19

Percent

CU New vs. Used Vehicle

July 2014

25

15.7% 14

Percent New 19.7%

20 15 10

9

Used 13.4%

5 0

4

-5 -10

-1

-15

-6 10 12

-20

11 12

12 12

13 12

14 12

10 12

11 12

Source data: CUNA Economics & Statistics and CUNA Mutual Group - Economics

Figure 3 2 ● Credit Union Trends Report

12 12

13 12

14 12

Real Estate-Secured Lending – 1st Mortgages and Other Real Estate Credit unions originated $24 billion of first mortgages in the 2nd quarter of 2014, down 33% from the $36 billion originated in the 2nd quarter of 2013 (see Figure 4). Three factors explain the decline: a drop in the mortgage refinance business, a 6% drop in housing sales, and a 54 basis point increase in mortgage interest rates. Credit unions sold $7 billion of those loans to the secondary market, or 29.7%, down from the 46.2% sold in the second quarter of last year. Because of the decline in mortgage origination volume, many credit unions are reporting lower “gains on sale of mortgage” income and mortgage origination fees. This has lowered non-interest income and put downward pressure on credit unions’ bottom line. We expect housing demand and purchase mortgage originations to increase over the coming months due to a large pent up demand for homes, improving credit access as lenders loosen underwriting standards to increase the purchase mortgage business to offset the falling refinance business, strong job growth and rising consumer confidence. Weighting down housing demand is a lack of 1st time homebuyers. The average age of the first home purchase is rising for many young people because of high student debt, changing attitudes regarding homeownership, and the relatively weak job market for new labor market entrants. Credit union fixed-rate first mortgage loan balances rose 0.3% in June and 2.7% year-to-date, down significantly from the 1.8% and 5.7% reported in July 2013. Adjustable-rate first mortgage loans are up 2.7% in July and 9.5% year-to-date, compared to 0.6% and 1.6% respectively in July 2013. Adjustable-rate first mortgage loans now make up 29.6% of the $287 billion credit union first mortgage loan portfolio, up from 28.2% one year earlier. U.S. home prices rose 0.8% in the second quarter of 2014, according to the Federal Housing Finance Agency House Price Index. This is the 12th consecutive quarterly price increase in the purchase-only, seasonally adjusted index. Modest inventories of homes available for sale are the major factor driving home prices higher. Home prices rose 5.2% from the second quarter of 2013 to the second quarter of 2014, which is significantly faster than the overall inflation rate for goods and services and much faster than the 2.2% increase in average hourly earnings. We expect annual home price increases to moderate for the rest of 2014 to around 5%.

1st Mortgage Origination Comparison

40

Originated

$ Billions

Loans Sold

$36

35 30

$24

25 20

$17

15 10 5

$7 46.2%

29.7%

0 Q2 2013

Q2 2014

Source data: NCUA 5300, Callahan & Associates and CUNA Mutual Group - Economics

Figure 4 Surplus Funds (Cash + Investments) Credit union surplus funds declined in July by $6 billion, or -1.5%, to partially fund a $9.5 billion increase in loan balances. With savings balances dropping $1.3 billion, credit unions turned to borrowing $4 billion to help balance the institution. Capital contributions of $0.5 billion, increased net worth by 0.42% in July and 9.3% of the last 12 months. At $384 billion, surplus funds are down $11.3 billion in the last 12 months, or 2.9%. The share of surplus funds deemed liquid (cash or maturity less than one year) has remained roughly at 42% during the last year. So of the $11.3 billion reduction in surplus funds, $4.1 came from liquid investments and $7.2 from investments greater than one year. As a percent of assets, surplus funds fell from 36.8% in July 2013 to 34% today.

3 ● Credit Union Trends Report

Savings and Assets Credit union savings balances fell 0.1% in July, lowering the year-to-date savings growth rate to 3.3%. In the last 12 months, savings balances are up 3.9%,see figure 5. The national savings rate (savings to disposable personal income) was 5.7% in July and was expected to fall over the next few months due to rising stock and home prices reducing the incentive to save, the improving economy stimulating the desire to spend and increased health insurance coverage reducing the need to set aside reserves for health-care related spending.

Growth In Credit Union Savings & Assets 10

Percent

July 2013 – July 2014 Savings = 3.9% Assets = 5.1% Savings Assets

8 6 4 2 0 10 12

11 06

11 12

12 06

12 12

13 06

13 12

14 06

14 12

Source data: CUNA Economics & Statistics and CUNA Mutual Group - Economics

Figure 5 Capital and Other Key Measures The credit union system’s capital-to-asset ratio remained at 10.7%, as the growth in capital kept pace with the growth in assets during July, but is above the 10.3% reported in July 2013, see Figure 6. We expect the capital ratio to climb above 11% during the next year due to improving earnings performance and slower asset growth. The loan-to-savings ratio rose to 73% in July, the highest in 4 years, helping to boost credit union earnings.

Credit Union Key Ratios and Delinquency Trends July 2014 Key Ratios

Loan Delinquency Rate 0.78%

L/S = 73.0% C/A = 10.7% Percent

Percent

90

12.0

85

11.5

2.0%

11.0

1.5%

80 75

Figure 5

Capital-to-Asset (Right Scale)

10.5

70

10 Year Average 1.176%

Percent

1.0%

10.0

65

9.5

Loan-to-Share (Left Scale)

60 10 12

11 06

11 12

12 06

12 12

13 06

13 12

14 06

9.0 14 12

0.5% 0.0% 10 12

11 06

11 12

12 06

12 12

13 06

13 12

14 06

14 12

Source data: CUNA Economics & Statistics and CUNA Mutual Group - Economics

Figure 6 The credit union loan delinquency rate (loans two or more months delinquent as a percent of total loans outstanding) fell to 0.78% in July, down from 1.02% in July 2013 and less than half the 1.88% reported in February 2010. Today’s delinquency rate is only slightly above the 0.71% average reported for the years 2003-2007. So, 5 years after the Great Recession ended there appears to be few credit problems still lingering on credit union balance sheets from that time.

4 ● Credit Union Trends Report

Credit Unions and Members As of July 2014, CUNA estimates 6,632 credit unions were in operation, down 14 from June. Year-to-date, the number of credit unions fell by 163, see Figure 7, which is slower than the 168 reported in 2013. Over the last year, the number of credit unions fell 270, slightly less than the 289 pace set one year earlier, as shown by the right-most bars in Figure 7. Our current forecast shows a net loss of 301 credit unions in 2014. Just released mid-year call report data from the NCUA shows 219 credit unions with assets in excess of $1 billion and 457 credit unions with assets greater than $500 million. The $1 billion and above asset credit unions represent 3.3% of all credit unions, but hold 53.6% of the credit union system assets and 55.6% of the loans. The median asset size of a U.S. credit union rose to $23.9 million in mid-year, up from $22.7 million at year-end 2013, a 5.3% increase.

Comparison of Declines in # of CUs July 2014 Actual = 6,632 400

Annual Declines July to July

Number of CUs

300

200 115

117

10

11

160

168

163

12

13

14

229

236

10

11

289

289

12

13

270

100

0

YTD July Declines

14

Annual Declines

Source data: CUNA Economics & Statistics and CUNA Mutual Group - Economics

Figure 7 Credit union memberships rose to 100.5 million in July, as 370,000 more Americans joined the U.S. credit union movement. Credit union memberships are up 2.1 million year-to-date, a 17% faster pace when compared to the similar period last year. In percentage terms, memberships rose 0.37% in July, 2.1% year-to-date, and 2.8% year-over-year. Membership growth is highly correlated to asset size. Credit union with assets over $1 billion reported 6.3% membership growth over the last year, compared to 4.3% for credit unions with assets between $0.5-1 billion, 1.4% for those with $100 -500 million and 0.5% for credit unions between $20-100 million in assets. The 3,038 credit unions with assets less than $20 million reported a 1.6% decline in memberships.

Month-Only Membership Gains July 2014 = 100.5 Million 500

Members (000’s)

450

2.1 Mln. YTD

400 350

1.8 Mln. YTD

300 250 6 Figure 200 150 100 50 0

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2013 Source data: CUNA Economics & Statistics and CUNA Mutual Group - Economics

Figure 8 5 ● Credit Union Trends Report

2014

National Monthly Credit Union Aggregates YR/MO 12 07 12 08 12 09 12 10 12 11 12 12 13 01 13 02 13 03 13 04 13 05 13 06 13 07 13 08 13 09 13 10 13 11 13 12 14 01 14 02 14 03 14 04 14 05 14 06 14 07

|------------------ ($ Billions) ---------------------| LOANS ASSETS SAVINGS CAPITAL 600.9 1,023.1 880.7 105.5 605.0 1,036.3 892.3 106.4 607.8 1,034.1 888.3 107.0 610.9 1,031.1 886.6 107.6 611.8 1,043.0 896.8 108.3 615.1 1,043.1 896.6 108.7 615.7 1,043.9 896.3 109.2 614.8 1,060.8 913.7 109.8 616.5 1,077.3 929.3 110.5 620.6 1,072.5 924.4 111.3 624.5 1,080.9 932.4 111.0 630.2 1,077.8 928.7 110.1 636.3 1,073.7 824.0 110.2 642.7 1,083.1 931.3 109.8 647.1 1,078.2 924.9 111.3 651.8 1,082.3 926.0 112.3 654.9 1,088.9 932.1 112.7 660.1 1,083.7 929.2 113.3 662.4 1,095.8 939.4 114.8 663.1 1,117.1 959.6 115.8 667.4 1,120.2 962.7 116.3 674.3 1,117.9 957.9 117.4 682.2 1,130.6 967.0 119.2 691.4 1,125.8 961.5 120.0 701.0 1,128.8 960.1 120.5

(Millions) MEMBERS 95.5 95.8 96.0 95.8 95.9 96.0 96.1 96.4 96.7 96.8 97.2 97.3 97.7 97.9 98.1 98.1 98.1 98.4 98.5 98.9 99.2 99.6 99.9 100.1 100.5

CREDIT UNIONS 7,191 7,162 7,144 7,115 7,116 7,070 7,057 7,047 7,008 6,999 6,987 6,930 6,902 6,880 6,864 6,834 6,828 6,795 6,759 6,746 6,735 6,691 6,660 6,646 6,632

LOAN / SAVINGS 68.2 67.8 68.4 68.9 68.2 68.6 68.7 67.3 66.3 67.1 67.0 67.9 68.9 69.0 70.0 70.4 70.3 71.0 70.5 69.1 69.3 70.4 70.5 71.9 73.0

CAPITAL/ ASSET RATIO 10.3 10.3 10.4 10.4 10.4 10.4 10.5 10.4 10.3 10.4 10.3 10.2 10.3 10.1 10.3 10.4 10.4 10.5 10.5 10.4 10.4 10.5 10.5 10.7 10.7

# OF CUs DECLINE (289) (287) (293) (298) (275) (281) (282) (260) (270) (261) (252) (289) (289) (282) (280) (281) (288) (275) (298) (301) (273) (308) (327) (284) (270)

Delinquency Ratio* 1.175% 1.180% 1.172% 1.129% 1.143% 1.153% 1.117% 1.081% 1.013% 1.001% 1.002% 1.033% 1.020% 1.018% 1.013% 1.009% 1.028% 1.005% 0.958% 0.886% 0.809% 0.818% 0.813% 0.798% 0.775%

Credit Union Growth Rates Percent Change Previous Year YR/MO 12 07 12 08 12 09 12 10 12 11 12 12 13 01 13 02 13 03 13 04 13 05 13 06 13 07 13 08 13 09 13 10 13 11 13 12 14 01 14 02 14 03 14 04 14 05 14 06 14 07

LOANS 3.8 4.2 4.4 4.6 4.7 4.8 4.9 4.9 5.0 5.1 5.1 5.4 5.9 6.2 6.5 6.7 7.0 7.3 7.6 7.9 8.3 8.7 9.2 9.7 10.2

ASSETS 6.0 7.8 6.5 6.1 7.3 6.2 6.5 6.2 5.3 5.4 5.9 4.8 4.9 4.5 4.3 5.0 4.4 3.9 5.0 5.3 4.0 4.2 4.6 4.4 5.1

SAVINGS 6.0 8.0 6.2 6.1 7.3 6.1 6.3 6.1 5.0 5.2 5.9 4.7 4.9 4.4 4.1 4.4 3.9 3.6 4.8 5.0 3.6 3.6 3.7 3.5 3.9

CAPITAL 6.9 6.8 7.9 7.8 7.9 8.5 8.1 8.4 8.3 8.0 6.8 5.4 4.4 3.3 4.0 4.3 4.1 4.2 5.1 5.4 5.2 5.5 7.3 8.9 9.3

MEMBERS 2.5 2.6 2.7 2.4 2.2 2.1 2.1 2.2 2.1 2.1 2.2 2.1 2.4 2.2 2.2 2.4 2.4 2.5 2.6 2.6 2.7 2.8 2.8 2.9 2.8

* Loans two or more months delinquent as a percent of total loans.

6 ● Credit Union Trends Report

# OF CUs (3.9) (3.9) (3.9) (4.0) (3.7) (3.8) (3.8) (3.6) (3.7) (3.6) (3.5) (4.0) (4.0) (3.9) (3.9) (4.0) (4.0) (3.9) (4.2) (4.3) (3.9) (4.4) (4.7) (4.1) (3.9)

Distribution of Credit Union Loans Estimated $ (Billions) Outstanding YR/MO 12 07 12 08 12 09 12 10 12 11 12 12 13 01 13 02 13 03 13 04 13 05 13 06 13 07 13 08 13 09 13 10 13 11 13 12 14 01 14 02 14 03 14 04 14 05 14 06 14 07

TOTAL NEW USED TOTAL LOANS | VEHICLE LOANS | 600.9 61.6 113.9 175.5 605.0 62.3 115.1 177.4 607.8 63.0 116.1 179.1 610.9 63.6 117.0 180.5 611.8 64.0 116.8 180.8 615.1 64.4 117.3 181.7 615.7 64.7 117.7 182.4 614.8 65.2 117.9 183.1 616.5 65.7 119.0 184.6 620.6 66.2 120.4 186.6 624.5 66.5 121.4 187.9 630.2 67.5 123.4 190.9 636.3 68.6 124.9 193.5 642.7 69.5 126.1 195.6 647.1 70.1 127.2 197.3 651.8 71.3 128.9 200.2 654.9 72.0 129.5 201.5 660.1 72.5 129.6 202.1 662.4 73.5 130.4 203.9 663.1 73.7 131.0 204.7 667.4 74.7 132.4 207.1 674.3 76.1 134.7 210.7 682.2 78.0 136.8 214.8 691.4 80.5 139.8 220.3 701.0 82.1 141.6 223.7

UNSEC CREDIT Ex. CC’S CARDS 26.1 38.0 27.1 38.4 26.6 38.6 26.9 38.8 27.3 39.2 27.3 40.3 27.4 39.8 27.0 39.3 26.7 39.3 27.2 39.5 27.4 39.9 27.6 40.3 28.2 40.8 28.6 41.3 28.7 41.5 29.0 41.6 29.3 42.0 29.8 43.4 29.8 42.8 29.5 42.2 29.2 42.3 29.8 42.5 30.2 42.8 30.5 43.3 31.5 43.7

CUCIC 234.7 237.1 236.7 238.8 242.6 244.0 246.4 248.2 245.5 248.2 248.9 253.8 255.9 259.2 261.9 263.2 263.8 265.6 267.9 267.9 269.9 274.2 279.2 284.3 289.7

1ST MORT TOTAL 245.3 246.3 249.1 250.6 249.0 252.0 251.8 251.6 254.2 254.7 257.5 259.7 263.4 266.5 268.3 270.8 271.6 273.9 274.5 275.9 278.8 279.6 280.8 283.6 286.6

TOT. OTHR TOTAL MORT REAL 2ND +HE ESTATE 77.7 323.0 77.4 323.7 77.0 326.1 76.6 327.2 76.7 325.7 75.5 327.6 74.8 326.7 74.3 326.0 73.6 327.8 73.4 328.2 72.9 330.4 72.6 332.3 72.2 335.6 72.2 338.7 72.3 340.6 72.0 342.8 71.7 343.3 72.5 346.3 72.1 346.6 71.7 347.7 71.3 350.0 71.8 351.4 72.3 353.2 73.0 356.7 73.6 360.2

MBLs* 43.2 44.1 45.1 45.0 43.5 43.5 42.7 40.7 43.2 44.2 45.2 44.8 44.8 44.8 44.7 45.8 47.7 48.2 47.9 47.6 47.5 48.7 49.8 50.5 51.1

TOT. OTHR TOTAL MORT REAL 2ND +HE ESTATE (7.7) 1.9 (8.0) 2.5 (8.3) 2.4 (7.9) 2.5 (7.4) 2.3 (8.1) 2.3 (7.7) 2.2 (7.4) 1.8 (7.5) 2.0 (7.2) 2.2 (7.2) 2.5 (7.1) 2.5 (7.0) 3.9 (6.8) 4.6 (6.1) 4.4 (6.1) 4.8 (6.5) 5.4 (4.1) 5.7 (3.6) 6.1 (3.5) 6.7 (3.1) 6.8 (2.3) 7.1 (0.8) 6.9 0.5 7.3 1.9 7.3

MBLs* 9.0 9.6 13.9 12.1 7.0 6.5 3.0 (3.4) 1.3 6.2 6.2 5.5 3.6 1.6 (0.8) 1.9 9.8 10.8 12.3 17.1 10.0 10.2 10.1 12.8 14.1

* Member Business Loans

Distribution of Credit Union Loans Percent Change From Prior Year YR/MO 12 07 12 08 12 09 12 10 12 11 12 12 13 01 13 02 13 03 13 04 13 05 13 06 13 07 13 08 13 09 13 10 13 11 13 12 14 01 14 02 14 03 14 04 14 05 14 06 14 07

TOTAL NEW USED TOTAL LOANS | VEHICLE LOANS | 3.8 2.3 7.2 5.4 4.2 4.0 7.4 6.2 4.4 5.8 7.8 7.1 4.6 6.6 7.9 7.4 4.7 7.5 7.7 7.6 4.8 8.6 7.9 8.1 4.9 9.3 8.3 8.6 4.9 10.5 8.1 8.9 5.0 10.6 8.2 9.0 5.1 10.7 8.6 9.4 5.1 10.2 8.4 9.0 5.4 10.7 9.2 9.7 5.9 11.4 9.6 10.2 6.2 11.6 9.6 10.3 6.5 11.3 9.6 10.2 6.7 12.1 10.2 10.9 7.0 12.5 10.9 11.4 7.3 12.6 10.4 11.2 7.6 13.6 10.8 11.8 7.9 13.0 11.2 11.8 8.3 13.8 11.2 12.1 8.7 14.9 11.8 12.9 9.2 17.3 12.7 14.3 9.7 19.3 13.2 15.4 10.2 19.7 13.4 15.7

7 ● Credit Union Trends Report

UNSEC CREDIT Ex. CC’S CARDS 3.6 4.9 6.3 5.0 4.2 5.5 4.5 5.3 5.5 5.5 4.8 5.7 5.4 5.9 6.0 6.3 6.3 6.8 7.3 6.6 8.1 6.8 7.2 7.2 7.9 7.3 5.6 7.5 8.0 7.6 8.2 7.4 7.2 7.2 9.0 7.7 8.8 7.6 9.4 7.3 9.2 7.5 9.7 7.5 10.2 7.5 10.5 7.4 11.7 7.0

CUCIC 5.5 5.6 5.7 6.3 7.8 8.0 9.3 10.9 10.1 9.0 8.5 9.5 9.0 9.3 10.7 10.2 8.7 8.8 8.7 7.9 9.9 10.5 12.2 12.3 13.2

1ST MORT TOTAL 5.4 6.3 6.2 6.2 5.7 5.9 5.5 4.9 5.1 5.3 5.6 5.6 7.4 8.2 7.7 8.1 9.1 8.7 9.0 9.6 9.6 9.8 9.1 9.2 8.8

Annual Growth Rates Total Loans & Installment Credit 15

CU Loan Portfolio 700

Percent

Total Loans

$ in Billions

$701.0 $660.1

600

CUCIC

500

$474.2

$511.1

$580.5 $587.4 $580.3 $587.0

$544.1

$615.1

$428.6

10

400

$388.5

300

47.0%

51.8%

54.1% 56.7%

59.3%

59.6% 61.0% 61.5% 60.3%

59.8% 58.7%

49.8%

200

5

100 0

0

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 July

1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12

2012

2013

2014

CIC

CIC Share of Total Loans at Credit Unions 45

Other

Consumer Installment Credit at Credit Unions

Percent

300

$ Billions

280

40

260 240

35

220

30

1

2 3

4

5

6

7 8

2012

9 10 11 12 1

2

3

4 5

6

7

8 9 10 11 12 1 2

2013

3

4

5 6

7

8

9 10 11 12

200

1 2

3 4 5

2014

6 7

8 9 10 11 12 1 2

3 4 5

2012

6 7

2013

8 9 10 11 12 1 2

3 4 5

6 7

8 9 10 11 12

2014

This report on key CU indicators is based on data from CUNA E&S’s Monthly Credit Union Estimates, the Federal Reserve Board, and CUNA Mutual Group – Economics. To access this report on the Internet:  Sign in at cunamutual.com  Go to the “Resource Library” tab  Under “Publications” heading, select Credit Union Trends Report If you have any questions, comments, or need additional information, please call. Thank you. Steven Rick 800.356.2644, Ext. 665.5454 [email protected] CUNA Mutual Group – Economics © CUNA Mutual Group, 2014 All Rights Reserved. CUNA Mutual Group is the marketing name for CUNA Mutual Holding Company, a mutual insurance holding company, its subsidiaries and affiliates.

8 ● Credit Union Trends Report