CHARLOTTESVILLE, Va. — Credit unions on aggregate had loan growth that nearly doubled the rate of banks during the second quarter — and also posted strong deposit growth — according to
The consultancy said CUs "yet again grew loans at a faster clip" than banks and thrifts in the second quarter of the year. This continues a trend that now includes every quarter dating back to early 2012.
Total loans at credit unions grew 10.58% year over year to $754.07 billion, according to SNL, while total loans at banks and thrifts grew by 5.40% to $8.546 trillion.
The SNL study was released just four days after the latest Credit Union Trends Report from CUNA Mutual Group found
Razi Haider, author of the SNL study, noted credit unions "inched above their counterparts" in deposit growth for the first time since the fourth quarter of 2013, posting 4.92% year-over-year growth, compared to 3.85% growth at banks and thrifts.
In aggregate, U.S. CUs had a loan-to-deposit ratio of 75.44% as of June 30 compared to 71.64% at banks and thrifts.
SNL said it analyzed the top 10 U.S. banks, thrifts and holding companies with more than $1 billion in total loans by loan-to-deposit ratio. SNL excluded nondepository trusts and industrial banks. SNL analyzed the top 10 credit unions with more than $250 million in total loans by loan-to-deposit ratio.
Top Ratios
Among credit unions, $1.1 billion Sharonview FCU in Fort Mill, S.C., retained the top spot with a loan-to-deposit ratio of 129.18% as of June 30, an 8.71-percentage-point increase year over year.
SNL said $1.9 billion United Federal Credit Union, St. Joseph, Mich., came in second with a loan-to-deposit ratio of 126.38%. I-C Federal Credit Union, a $508 million institution based in Fitchburg, Mass., took the third spot, even though its loan-to-deposit ratio fell by 9.75 percentage points compared to the year-ago quarter.
American Express Co. topped the list of banks and thrifts again with a loan-to-deposit ratio of 227.93% as of June 30. The company's loan-to-deposit ratio did fall by 2.95 percentage points compared to the first quarter and 17.09 percentage points compared to the year-ago quarter.
Specialty lenders and banks with a significant concentration in a single loan class "still dominate" the top 10 banks and thrifts list. For instance, SNL said approximately half of all loans at American Express and United National Corp. are credit card loans. Ally Financial Inc. and Santander Holdings USA Inc. are more focused on auto lending and Mizuho Bank (USA) and Beal Financial Corp. are concentrated in the commercial and industrial loan marketplace.
