CU auto loan balances see worst month since last December

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Real estate and consumer loans continued to advance in October, but cars stagnated for credit unions, CUNA data showed.

CUNA’s Monthly Credit Union Estimates report shows that credit unions held $ 403.3 billion in auto loans as of October 31, up 4.3% from the previous year, but unchanged from September. All other loans were $ 861 billion, up 7.2% from the previous year and 1.4% from the previous month.

October was the worst month for monthly auto loan balances since falling 0.4% in December 2020.

New car loans were $ 141.6 billion, down 2.4% from the previous year and 0.8% from the previous month, the second consecutive monthly decline. A headwind for all lenders has been the scarcity of new cars due to the shortage of microchips.

Used car loans were a source of strength for credit unions, but October saw earnings slow. The balance was $ 261.7 billion on October 31, up 8.4% from the previous year. However, the gain from September was only 0.5%, compared to gains of 1.5% in August and 1% in September.

But credit cards rebounded significantly, in part reflecting the start of the holiday shopping season.

Chart showing credit union credit card balances are rising to pre-pandemic levels. The Fed’s G-19 consumer credit report released on Tuesday showed credit unions held $ 62.3 billion in credit card balances on October 31, up 2.1% from the previous year. previous year and 1.2% compared to September.

October’s gain over the month compares to an average 0.5% gain for the month of 2015 through 2019. However, it follows a small 0.1% gain in September and the October balance. is still 4.6% lower than in February 2020, the month before closures began with the start of the COVID-19 pandemic.

The strength of consumer loans during the month was shared with unsecured consumer term loans. That balance was $ 56.6 billion on October 31, up 4% from the previous year and 3% from September.

Real estate also remained strong.

First mortgages increased 9.5% to $ 565.1 billion from a year ago – the largest 12-month increase since April – and were up 1% from the previous month . Second privileges fell 2.3% to $ 86 billion from the previous year and were up 1% from the previous month.

The CUNA report shows that the country’s 4,990 credit unions had 130.7 million members, up 3.5 percent from the previous year and 0.2 percent from September. He also showed:

  • Assets stood at $ 2.09 billion, up 13% from the previous year and 1.6% from the previous month.
  • The savings amounted to $ 1.8 billion, up 13.7% from the previous year and 1% from the previous month.
  • Savings per member were $ 13.76 billion, up 9.8% from the previous year and 0.8% from the previous month.
  • Total loans stood at $ 1.26 trillion, up 6.3% from the previous year and 1% from the previous month.
  • Loans per member amounted to $ 9.67 billion, up 2.7% from the previous year and 0.8% from the previous month.
  • The delinquency rate over 60 days was 0.49% as of October 31, compared to 0.55% a year earlier and 0.46% a month earlier.


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