ARLINGTON, Va.—With a sentence that would have been considered a godsend not too long ago, NAFCU noted in its more recent economic analysis that loan growth “has slowed to 9.5% year-over-year.”
Meanwhile, as part of a survey of its membership, and with a new proposal regarding FHLB membership being debated, NAFCU said that it found respondents would be more likely to join a Federal Home Loan Bank if membership satisfied NCUA’s liquidity rule requirement. As of June 2014, 19% of credit unions were members of FHLBs, up from 11.4% in 2007.
The numbers were part of the trade association’s Economic & CU Monitor, which analyzes data through the first three quarters of 2014.
NAFCU noted that membership growth remained at 2.9%, while share growth declined to 3.3% year over year, in line with figures released by CUNA Mutual and reported by CUToday.info here.
Among the other findings:
- Aggregate net worth increased by five BPs to 10.86%.
- Net interest margins increased by four BPs in September, but respondents to NAFCU’s survey generally expect margins to tighten over the next year.
- Despite the growth in lending, respondents are pessimistic about growth in first mortgages over the next year.
- Noting the CFPB has indicated an interest in overdraft fees, NAFCU said its survey found respondents once again proved credit unions’ commitment to minimizing member fees. Every respondent offered an alternative to overdraft or courtesy pay programs, with overdraft lines of credit and linked savings or money market accounts being the most popular (82.9% each). Additionally, 91.2% of respondents reverse overdraft charges on a case-by-case basis.
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