CU auto loan balances see worst month since last December

Source: Shutterstock.

Real estate and consumer lending continued to advance in October, but cars held steady for credit unions, according to CUNA data.

CUNA’s Credit Union Monthly Estimates report showed credit unions held $403.3 billion in auto loans as of Oct. 31, up 4.3% from a year earlier but unchanged. compared to September. All other loans were $861 billion, up 7.2% from a year earlier and 1.4% from a month earlier.

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

New auto loans came in at $141.6 billion, down 2.4% from a year earlier and 0.8% from a month earlier — the second straight 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 showed slowing gains. The balance was $261.7 billion as of October 31, up 8.4% from a year earlier. However, September’s gain was only 0.5%, compared to gains of 1.5% in August and 1% in September.

But credit cards showed a strong rebound, partly reflecting the start of the holiday shopping season.

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

October’s gain in the month compared to an average 0.5% gain for the month from 2015 to 2019. However, it follows a weak gain of 0.1% in September and the balance of October is still 4.6% lower than it was in February 2020, the month before the shutdowns began with the onset of the COVID-19 pandemic.

The strength in consumer loans during the month was shared with unsecured consumer term loans. This balance was $56.6 billion as of October 31, up 4% from a year earlier and 3% from September.

Real estate also remained strong.

First mortgages rose 9.5% to $565.1 billion from a year earlier — the biggest 12-month rise since April — and were up 1% from the previous month. Second liens fell 2.3% to $86 billion from a year earlier and were up 1% from a month earlier.

The CUNA report showed that the country’s 4,990 credit unions had 130.7 million members, up 3.5% from a year earlier and 0.2% from September. It also showed:

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

Comments are closed.