Analysis by Callahan & Associates of the more than 900 credit unions that participate in its "First Look" program indicates those CUs experienced a 3.98% rise in auto loans during the second quarter of this year versus the first. But a number of participating CUs reported significantly larger gains in volume during the first quarter, including Denton Area Teachers CU in Texas, which was up 44.9% (and also reported a 0.16% delinquency ratio); Lone Star Credit Union, also in Texas, up 43.9%, and Illiana Financial CU in Illinois, where the auto loan portfolio was up 41.9%.
Overall, auto loan portfolios at the top 10 CUs participating in First Look posted a 33.9% increase in auto loans. Callahan's said much of that growth is attributable to indirect lending-of the top 10, nine make indirect loans. "The indirect loans granted year-to-date comprise a large percentage of the total loans originated year-to-date," Callahan's said. "In fact, almost one-half of total loan originations were from indirect lending. Compare this with the average First Look credit union, whose indirect lending program accounts for approximately 10% of total loan originations."