WASHINGTON—Credit union annual membership growth may top 4% by the end of 2015, according to CUNA projections.
Looking at Q3 data plus numbers through October, CUNA Chief Economist Bill Hampel said the trade association believes CUs are headed for another record year in adding new members.
“It looks like this year we might break 4% for membership growth, which would be phenomenal growth considering the U.S. population is only growing at seven-tenths of a percent,” said Hampel.
Membership at credit unions increased by 3.6% in 2014. Previously, the high-water mark was 3.7% in 1994.
Hampel acknowledged that a sizeable percentage of the growth is being driven by indirect auto loans.
“But it does give credit unions the opportunity to convert some of these folks—who are being introduced to credit unions for the first time—to more full-service members.”
Auto lending, and lending overall for CUs in October, remained strong, as it has all year, said Hampel, saying that 2015 loan growth should be on par with 2014.
NCUA last week released CU financials for the third quarter, showing again that most of the loan growth is coming from the biggest CUs. Total loans at federally insured credit unions reached $769.5 billion in the third quarter of 2015, an increase of 3.3% from the previous quarter and 10.7% from a year earlier.
Hampel pointed out that savings growth has been quietly picking up, as well. Based on October numbers, 2015 could turn out to be credit unions’ best savings growth year since 2009.
“During a recession people want to save because they are worried about their jobs,” said Hampel. “But the fact that savings growth is picking up in a strong economy is really good news for credit unions.”
October data puts the CU loan-to-savings ratio at 78%, the highest since 2008, said Hampel.
“Savings are not growing as fast as loans, but it’s good we are getting some savings growth.”