Thank you for sharing!

Your article was successfully shared with the contacts you provided.

MADISON, Wis.-April’s economic data from CUNA shows the seasonal tendencies of credit union balance sheets. The loan-to-savings ratio was up to 68% in April from 67.4% in March, according to CUNA’s monthly estimates. CUNA Economist Mike Schenk told Credit Union Times, even though savings grew a little slower than anticipated and loans grew a little faster than expected for this April, “From a seasonal standpoint, loans typically outpace savings growth in April.” Two reasons for the seasonal adjustment in the spring are more people borrowing to pay taxes or do home improvement projects, the economist said. So no speedy recovery is expected any time soon. Schenk said the economy was likely to begin to pick up by the middle of next year. While savings grew just 0.1% in the month of April to $528.3 billion, the amount of loans outstanding grew 0.9% in the same time period to $359.1 billion. This was the highest monthly loan growth since June 2002. Loans outstanding last April only totaled $336.8 billion, according to CUNA’s data. On the savings side of the ledger, Individual Retirement Accounts led the way with 1.6% growth, while regular shares actually dropped 3.3% for the month. Used car loans and adjustable-rate mortgages bolstered lending with 1.4% and 1.2% growth, respectively. Schenk said that he does expect double-digit loan growth – around 10% – for 2003. By year-end 2004, he said to expect the loan growth to outpace shares and the loan-to-share ratio to creep up to 72% or 73%. In the meantime, credit unions’ capital-to-asset ratio held steady at 10.6% and delinquencies have remained at 0.8% for half a year. Asset quality “looks very healthy, I mean, low that is,” Schenk commented. [email protected]

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times
Live Chat

Copyright © 2022 ALM Media Properties, LLC. All Rights Reserved.