MADISON, Wis. – Another $7.2 billion in new deposits flowed into credit unions in June, putting 2012 on pace for the greatest inflow of funds into credit unions ever, according to CUNA.
Savings have grown 5.1% for the first half of the year, with a total of $42.8 billion of new shares added to credit union ledgers, according to the CUNA monthly estimates. Those estimates are similar to those by NCUA, which projects approximately $43 billion in new deposits for the first six months.
NCUA is expected to report its own first half data in the next few weeks, but CUNA’s estimates, based on a monthly survey of 450 credit unions, is always very close to those compiled by NCUA.
The pace of new deposits is the highest since the first half of 2009, when it was 7.9%, and 2008 when it was 6.4%, as depositors were fleeing troubled banks and other investments for the safety of federally insured credit unions. But the dollar amount is much greater this year as the total size of the credit union movement is much larger. In 2009, for example, credit unions added $72 billion in new deposits, and in 2008 it was $45 billion.
Fueling the savings growth is the continued addition of new members, with another 200,000 credit union members added in June, making an estimated 1.3 million new members for the first half, according to CUNA. If that growth holds up in the second half it would create the best year ever for membership growth.
But loan growth remains tepid, expanding by 0.4% for June and by just 1.4% for the first half of 2012, according to CUNA.
Still, that’s better than the negative loan growth for the first half of 2010 and in 2011, and is the best since 2008.