May 13, 2014

Faster loan growth reported in May's ECUM

May 14, 2014 – NAFCU members responding to an Economic & CU Monitor survey on lending reported that they have returned to pre-recession rates of loan growth, year over year, and saw loan growth accelerate to 10.6 percent in March.

Other highlights from May's Economic & CU Monitor include:

  • Survey respondents saw strong member growth in March of 4.5 percent, while year-over-year share growth moderated to 5 percent.
  • Every region expects equal or accelerating loan growth during 2014.
  • Net interest margins shrank by 5 basis points in March.
  • Return on assets declined to 0.81 percent in March but has increased 3 basis points since December.
  • Survey respondents' average net worth ratio increased one basis point in March to 10.57 percent.

While credit union lending has improved, the Economic & CU Monitor found that new regulations and proposals, including CFPB's new mortgage rules, threaten to increase costs for credit unions.

Survey respondents reported that roughly 13 percent of their 2013 mortgage originations would not have met CFPB's qualified mortgage criteria. Nearly half of respondents, 48 percent, indicated that they would stop originating non-QM loans.

Survey findings are detailed in the May edition of NAFCU's Economic & CU Monitor.