In the 12-month period ending on June 30, 2009, the average total member relationship (excluding business loans) grew 2.3 percent to $14,216. Growth has slowed from last year’s rate of 5.7 percent largely due to increases in credit union membership. The industry’s average share balance increased 6.5 percent over June 2008 levels to $8,199, a reflection of increased consumer savings. Average loan balances grew 2.1 percent annually to $12,649.
Credit unions originated a record $144.2 billion in loans in the first six months of 2009, although many are refinances due to historically low interest rates. To manage their balance sheets, credit unions sold $30.8 billion in first mortgages to the secondary market in the first half of 2009, tripling the amount sold during the same period in 2008. As such, the full member relationship, at least on an industry level, may be understated. If we add in the amount of real estate loans sold but are still serviced by the credit union to the calculations, the average member relationship reaches $15,115, up from $14,328 in June of 2008.
Looking to hear more about industry trends and how market factors, such as interest rates, are affecting credit union balance sheets? Join us for the complimentary 2Q 2009 Trendwatch Call on September 2nd or 3rd.