Loan growth has bested deposit growth at credit unions for the first time in five years, says a new report from credit union analytics provider Callahan & Associates. In fact, lending in the industry has reached a record pace of $175.1 billion, or $1 billion per day, in originations in the front half of 2013.
Consumer lending has fueled this growth, with new-auto loans the fastest-growing segment of the industry’s loan portfolio. New-car loan balances increased 11.2% year over year, while used-car borrowing continued to be solid as credit unions provided a number of refinancing options to lower their members’ monthly payments.
“Consecutive years of record lending activity are evident in the loan portfolio growth,” Jay Johnson, executive vice president at Callahan & Associates, said in a press release. “Every loan category in the portfolio is growing at a faster rate in 2013 than in 2012. Credit unions continue to build on the momentum developed during the downturn when they were lending to members at a then-record pace during the height of the ‘credit crunch.’”
The $621 billion credit union loan portfolio grew 5.4% the past year, and through June, $91 billion of consumer loans were originated. North Dakota led the pack with a year-over-year loan origination increase of 37.6%, with Idaho in second with a rise of 30.1%.
Additionally, New York-based Callahan found that credit union mortgage origination level reached its highest-ever total, as did its credit card balances.
