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Credit unions increased their share of credit card debt and consumer term loans in June as their growth held steady while bank balances continued shrinking.
The Fed’s G-19 Consumer Credit Report showed credit unions held $85.9 billion in credit card debt on June 30, up 4.1% from a year earlier. The gain was 0.9% from May to June, compared with the 10-year average May-to-June gain of 0.8% from 2015 through 2024.
Credit unions’ share of the debt was 6.8% in June, unchanged from May and up from 6.4% in June 2024.
Banks held $1.2 trillion in credit card debt, down 2.9% from a year earlier and up 0.2% from May, compared with the 10-year average May-to-June gain of 0.9%. Banks’ share was 91.9% in June, unchanged from May and down from 92.1% in June 2024.
Finance companies held $16.1 billion in credit card debt, down 15% from a year earlier and down 1.6% from May, compared with the 10-year average gain of 8.1%.
Credit unions also gained in non-revolving consumer credit, which includes car loans, boat loans and personal loans. Credit unions held $636 billion in non-revolving consumer loans in June, up 11.2% from a year earlier. The gain was a mere 0.1% from May, compared with the 10-year average monthly gain of 0.7%.
Banks held $832.1 billion in consumer term loans in June, down 6.8% from a year earlier. The gain from May was 0.7%, compared with the 10-year average monthly gain of 0.5%.
The G-19 released Aug. 7 included the quarterly estimate of $1.56 trillion in total motor vehicle loan balances outstanding in June. NCUA data for 4,434 credit unions in Callahan’s Peer Suite showed credit unions held $87.3 billion in car loans, or 31.2% of the nation’s car debt, down from 31.7% a year earlier.
The 60-day-plus delinquency rate for credit cards was 1.93% on June 30, down from 1.98% a year earlier and 2.01% March 31.
The total delinquency rate for credit unions was 0.90% June 30, up from 0.84% a year earlier and 0.73% March 31. It was 0.41% two years earlier.
The average credit card balance was $3,328 on June 30, up 2.8% from a year earlier and up 1.3% from March 31.
Among credit unions with at least $100 million in credit card balances, the average balances on June 30 ranged from $6,513 at Navy Federal Credit Union of Vienna, Va. ($191.8 billion in assets, 14.7 million members) to $1,067 at Global Federal Credit Union (formerly Alaska USA) of Anchorage ($13.1 billion in assets, 790,226 members).
Others with balances greater than $5,000 in June were:
- Aberdeen Proving Ground Federal Credit Union (APG) of Edgewood, Md. ($2.5 billion in assets, 174,947 members): $6,159.
- State Department Federal Credit Union of Alexandria, Va. ($2.9 billion in assets, 86,468 members): $5,195.
- Pennsylvania State Employees Credit Union of Harrisburg, ($9 billion in assets, 564,139 members): $5,083.
The average credit card use rate was 28% in June, little changed over the past year.
Contact Jim DuPlessis at JDuPlessis@cutimes.com.
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