Compared to banks, credit unions have done a better job at bouncing back from the lending slump brought on by the Great Recession a few years ago.

According to analysis from data tracking firm SNL Financial, loans at credit unions have reached an all-time high. However, loans at banks and thrifts are still more than $200 billion below a second-quarter 2008 peak, the financial data analysis firm said.

As of June 30, loans at credit unions have grown 72.52% to $621.27 billion from $360.12 billion a decade ago, SNL Financial said.

In the first part of the decade, credit unions also experienced an upward trend in their loan-to-deposit ratio aided by a faster pace of loan growth that occurred through the end of 2006, according to SNL Financial.

The scenario changed in 2007 and 2008 when the ratio took a dive. Starting at the end of 2008, the loan-to-deposit ratio dropped by 15.67 percentage points to 67.42% as of June 30, 2013, the SNL analysis showed. Credit unions did see a bright spot during the first quarter of this year when the ratio experienced a 155-basis point increase, the firm said.

The $595.5 million Progressive Credit Union in New York topped the list of having the highest quarter-over-quarter increase in its loan-to-deposit ratio among all credit unions with at least $250 million in assets, according to SNL Financial. Its ratio rose by 11.48% helped by a 5.26% increase in loans against a 1.22% drop in deposits. At the end of the second quarter, business loans made up 97.13% of Progressive's total loans.

Rounding out SNL Financial's list of the top 15 credit unions with the highest growth in loan-to deposit ratio in the second quarter were:

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
  • Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Lending