Credit Unions Experience Robust Lending Growth in 2Q14

Callahan & Associates' second-quarter Trendwatch shows credit union industry posting its highest loan growth rates since 2005 while capturing its highest ever share of mortgage originations during the first half of the year.

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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.

Washington, DC (PRWEB) August 28, 2014

Credit unions posted strong overall lending numbers in the second quarter of 2014, according to data revealed during Callahan & Associates’ 2Q14 Trendwatch.

Credit unions as a whole posted their highest loan growth rates since 2005, experiencing nearly 10 percent year-over-year growth during the second quarter. Additionally, credit unions saw double-digit growth in four separate components of the loan portfolio: first mortgages, new auto, used auto, and member business lending. Consumer loan originations increased 60 percent compared to the first half of 2013 and 90 percent compared to the first half of 2012. The key to such strong performance may be an uptick in the overall economy.

Mortgage originations contributed to this loan growth, with credit unions capturing their highest ever market share during the first six months of the year at 8.4 percent. It continues a strong run for credit unions, which have captured a market share of at least 7.5 percent in each of the past four quarters.

“We’re seeing a shift in the mortgage market to smaller lenders,” said Jay Johnson, Executive Vice President of Callahan & Associates. “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.”

Partly due to the increase in loan income, credit unions’ total revenue for the first two quarters of 2014 increased over the same period from 2013. It marks the first time that revenue has risen since 2009.

For information on acquiring a recording of Trendwatch, please call Callahan & Associates at 1-800-446-7453 to speak with an account manager.

About Callahan & Associates
Callahan & Associates is dedicated to helping the credit union industry thrive. Our team of experts provides leading research, analytics, networking and consulting solutions. More than 4,000 credit unions and industry suppliers rely on us for the latest data, actionable insights and benchmarking tools to develop their unique competitive advantages and achieve their strategic goals. Our 30-year history has enabled us to build an unparalleled knowledge transfer consortium which connects the industry’s best minds. To learn how you can join Callahan’s network, please visit http://www.callahan.com.


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    Callahan & Associates
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