WASHINGTON-Credit union loan originations totaled $120.5 billion during 2011, a 5.1% increase over 2010 and just slightly below the record $122.1 billion in 2009, according to one analysis released last week.
Data released by Callahan & Associates as part of its First Look analysis also showed that annual member growth was 2.3% for 2011.
The data, based on information supplied by 40% of all credit unions, showed that the fourth quarter was especially strong for loans, with the FirstLook credit unions report funding $33.7 billion in loans in Q4, up from $31.2 billion in Q3. "That partially reflects the continuing improvement in consumer lending," Callahan's said. "In 2011, 58.5% of originations were consumer-based, up from 55.3% in 2010."
The company said its data also showed CUs posted a year-over-year 1.59% positive change in outstanding loan balances, a "significant acceleration from September figures, when the same credit unions posted loan growth of only 63 basis points. The last time credit unions increased loan growth by nearly a full percentage point in a single quarter was mid-year 2005."
In addition to the strong increases in membership, which it attributed in part to Bank Transfer Day, Callahan's noted that CUs are generating relationships out of those memberships, with the number of checking accounts growing at an annual rate of 6.1%, more than twice the rate of net new member growth.
