For the first time since 2008, the pace of loan growth among credit unions has surpassed deposit growth with a record total of $1 billion in loan origination daily among the credit union industry, according to the latest analytic report from Callahan & Associates.
The report noted that credit union performance shows lending surging forward in the first half of 2013. The $621 billion credit union loan portfolio has expanded by 5.4% over the past 12 months, the fastest pace in five years and ahead of the 4.6% share growth rate, according to the New York research firm.
New auto loans are the fastest growing component of the industry's loan portfolio and real estate lending continues to rise at credit unions as well, the firm said, with six states posting at least a 20% increase in loan origination.
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"Consecutive years of record lending activity are evident in the loan portfolio growth. Every loan category in the portfolio is growing at a faster rate in 2013 than in 2012," said JayJohnson, executive vice president at Callahan & Associates.
"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,'" Johnson said.
Here are highlights from the Callahan & Associates analysis:
- Six months into 2013 the credit union industry's lending activity is on a record pace with $175.1 billion in loans originated, or $1 billion a day.
- The $66.1 billion in first mortgage originations is the highest ever through June, helped by a record $34.9 billion in home loans being granted to members during the second quarter.
- Credit unions originated 6.8% of all first mortgages in the U.S. in the first half of 2013.
- The pace of home equity lending has also picked up with originations increasing 10% from year- ago levels.
- Consumer lending is a key driver of growth, with over $91 billion in originations through June.
- Supported by surging new car sales, new auto loan balances are up 11.2% over the past year.
- Credit union credit card balances topped $40 billion for the first time at mid-year.
- North Dakota leads the nation with a 37.6% increase in loan originations compared to the first half of 2012, followed by Idaho with a 30.1% rise.
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