Used cars and first mortgages continued to grow in credit union portfolios in September, while loans declined for new cars and second-tier real estate, according to the latest monthly estimates from the CUNA.
Meanwhile, the Fed’s G-19 consumer credit report released on Friday showed credit card balances edged up in September, but credit unions lost more shares to banks. .
The G-19 showed that auto loan balances were increasing despite declining sales of new and used cars.
One of the reasons is that escalating prices make borrowing more critical. Computer chip shortages still hold back new car sales, and dealerships offer few incentives. Used car prices continue to soar. Cox Automotive reported on Friday that its Manheim Used Vehicle Value Index for October was up 38% from a year ago and 9.2% from September.
The Fed’s G-19 showed all lenders held $ 1.3 trillion in auto loans in September, up 2.1% from second quarter and 6.9% from third quarter 2020 .
In comparison, CUNA showed that the growth of auto loans to credit unions was slower. Its Monthly Credit Union Estimates report released last week showed an auto loan balance of $ 402.7 billion in September, up 1.9% from the second quarter and 4.7% from the third quarter. 2020.
New car loan balances declined from the previous month in five of the first nine months of 2021 at credit unions, while used car balances increased each month.
New car loans were $ 142.6 billion, down 0.4% from August and 0.7% from a year ago. Used car loans were $ 260.1 billion, up 1.0% from August and 8% from a year ago.
The biggest gain for credit union loans comes from first mortgages. They stood at $ 557.8 billion on September 30, up 0.9% from August and 8.1% from a year ago.
Second-tier home loans were $ 85 billion, up 0.5% from August and down 4.4% from a year ago.
The G-19 showed that credit card balances continued to slowly recover after the pandemic, which reduced spending in the first few months. They have continued to see heavy payouts as household savings rates remain well above normal, albeit declining.
Compared with February 2020, the month before the COVID-19 pandemic was declared, credit card balances in September were still 5.7% lower at credit unions and 7.5% lower at banks.
Credit unions held $ 61.5 billion in credit card debt on September 30, up 0.1% from August and 0.7% from a year ago. The share of credit unions was 6.3% in September, compared to 6.4% in August and 6.5% in September 2020.
Banks held $ 875 billion in credit card debt on September 30, up 0.6% from August and 3.4% from a year earlier. The banks’ share was 90.2% in 2021-09, compared to 90.1% in August and 89.7% in September 2020.
The country’s 5,171 credit unions had 130.4 million members as of September 30, up 0.2 percent from the previous month and 3.3 percent from the previous year. The CUNA report also showed:
- Assets stood at $ 2.05 trillion as of September 30, up 0.1% from August and 12.9% from a year ago.
- Total loans stood at $ 1.25 trillion as of September 30, up 0.5% from August and 5.4% from a year ago.
- Loans per member were $ 9,590 in September, up 0.3% from August and 2% from a year ago.
- The savings amounted to $ 1.78 trillion, up 0.7% from August and 14.4% from a year ago.
- Savings per member were $ 13,646, up 0.6% from August and 10.7% from a year ago.
- Surplus funds (cash plus investments) stood at $ 715.1 billion, down 1.1% from August and up 28.7% from a year ago.
- The delinquency rate over 60 days was 0.46% as of September 30, compared to 0.54% a year earlier and 0.46% a month earlier.