WASHINGTON—Credit union lending continues to be strong, with CUs showing their strongest loan numbers since 2005 during the second quarter of 2014.
That's according to Callahan & Associates' 2Q14 Trendwatch, which reported CUs showing nearly 10% year-over-year growth during Q2. Credit unions also saw double-digit growth across multiple components of their loan portfolios, including first mortgages, new and used autos, and member business lending. Consumer loan originations were up 60% compared to the first half of 2013 and up a whopping 90% compared to the first half of 2012.
Callahan credited the strong performance to an uptick in the overall economy.
Mortgage originations contributed to credit union loan growth, Callahan reported, with CUs capturing 8.5% of marketshare during the first two quarters-their highest-ever showing. CUs have captured at least a 7.5% share of the mortgage market in each of the last four quarters.
Jay Johnson, EVP at Callahan & Associates, said the market is seeing a shift toward smaller mortgage lenders.
"The largest lenders are pulling back and re-assessing operations while the smaller lenders are demonstrating their flexibility by offering different kinds of products, such as ARMs and non-QM mortgages," he said in a statement.
