MADISON, Wis. – February saw the highest decline in creditunions since August 2001 even as 119,000 members were added for atotal industry count of 85.2 million. CUNA Mutual Group's FebruaryCredit Union Trends Report revealed that the credit unionmarketplace shrank by 44. For the year, the industry has lost 56credit unions with the total count now at 9,653. Industry expertsnote that some members that belong to more than one credit unionare counted as a separate member for each one that he or shebelongs to. Semi-annual data revisions added 532,000 members to theoriginal estimates. This revision increased the annual growth ratefrom 1.2% to 1.8%. The year-over-year increase in members rose to1.5 million. In other areas, member savings improved by $7 billionin February increasing the total to $557 billion, according to thereport. While the year-to-date net inflow of $11.4 billion is asolid increase, CUNA Mutual advises credit unions not to count on“large inflows of `cheap money' in 2004. Still, assets grew to $642billion in February as annual growth slowed to 7.5%, down fromearly 2002's peak of 15.6%. Regular shares, which comprise 38% ofall credit union deposits, now pay 0.94%, down three basis pointsfrom the start of 2004 and 47 from February 2003. Average deposityields on almost all types of accounts declined in February, CUNAMutual reported. Credit unions currently hold $390 billion inmember loans, which is a “healthy” 9.7% showing over the amountposted last February, CUNA Mutual reported. Fixed and adjustablerate first mortgages were the “biggest contributors” to theincrease, accounting for 31% and 15%, respectively. While totalloan growth has nearly passed its 10-year average rate of increase,installment loans have yet to reach that benchmark. Theloan-to-share fell 125 basis points to 70.0% due to a “surge” indeposits while the capital-to-asset ratio improved at 10.7%.Despite the year-to-date decline, this key ratio is 176 bps aboveFebruary 2003's ratio, according to the report. Reduced depositinflows this year could move both the capital/asset ratio andloan/share ratio up by year end. Even though total car loansslipped in February, lending still rose 9.5% over the past yearwith new car loans comprising 44% of all car loans. As previouslyforecast by CUNA Mutual, used car loans continue to see substantialgains. Since February 2003, used car loans have accounted for 70%of all vehicle loan growth and 26% of total loan growth. Thisyear's used car loan figures are expected to be the most solidperformance growth since 2000, according to the [email protected]