WASHINGTON-For the first time since 2008, loan growth at credit unions has exceeded deposit growth, while net worth ratios have also hit a five year-high.
Analysis released by Callahan & Associates and by NCUA last week found that the $621-billion CU loan portfolio is now up 5.4% over the past 12 months, outpacing share growth of 4.6%.
"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 dollars a day," Callahan & Associates said.
Six states have posted at least a 20% increase in loan originations, led by North Dakota at 27.6% and Idaho at 30.1%.
"Consumer lending is a key driver of growth, with over $91 billion in originations through June," Callahan's reported, citing a surge in auto lending (see related stories page 3, pages 14-17). In addition to the strong auto lending results, Callahan's noted credit card balances topped $40 billion for the first time at mid-year.
Other findings in the Callahan data:
- 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.
Meanwhile, NCUA said its mid-year numbers show the four quarters concluded with Q2 2013 represented 5.5% loan growth, the strongest four-quarter growth since 2009. The agency said membership in federally insured CUs is at 95.2 million, an all-time high, with 2.1-million people joining in the year ended June 30.
Overall net worth in credit unions stodd at 10.5% at June 30, up 34 BPs from one year earlier. The ratio is the highest since Q4 2008.
Other Data:
- The delinquency ratio stood at 1.04%.
- Overall ROA stood at an annualized 85 BPs.
- Credit unions of more than $500 milion in assets continue to lead most performance categories and hold two-thirds of all CU assets. The one area where smaller CUs do lead: higher net worth ratios.
