Even though member business loans are up 16.3% over the past year, much of the gain occurred in 2008. The year-to-date gain is now below 0.5%.
That's according to CUNA Mutual Group's May Credit Union Trends Report, which was released today. Total loans are up just 0.5% YTD and annual growth has slowed to 5.2%, which is the lowest gain since April 1993.
"Without the strong push from real estate secured lending, loan growth will head lower," the report read. For 11 of the past 13 years, real estate secured loans drove total loan growth. While first mortgages are a large share of the YTD gain, credit unions will be selling more loans. As a result, growth "will be muted until interest rates move higher."
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Used vehicle lending accounted for 20% of all loan growth over the past year and 89% of the YTD change. The 6.2% gain in this portfolio was offset by a 3.6% decline in new vehicle loans, according to the report.
Meanwhile, credit unions generated 0.8% deposit growth in May through share drafts and money market accounts, and regular shares and certificates of deposit declined by $1.3 billion. Still, over the past year, liquid deposits have accounted for 64% of all deposit growth. Almost 38% came from the 15.1% growth in MMAs, which are approaching 20% of all deposits.
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