Credit Union Lending Reaches Record Levels in 2014

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Credit unions granted a record $355 billion in loans in 2014 while also achieving a record average member relationship of $16,300 according to data from Callahan & Associates.

In 2013 you saw positive loan growth, but it’s the acceleration of that momentum carrying into 2014 that has many optimistic about what that can mean for 2015 as well.

Credit unions set all-time performance highs in several key lending measures in 2014 according to Callahan & Associates’ 4Q14 Trendwatch, indicating that consumers are taking advantage of credit unions’ traditionally lower rates in an improving U.S. economy.

Credit union members were granted a record $355 billion in loans in 2014, led by over $220 billion in auto, credit card, and student loans. Members are increasingly turning to their credit union for these loans, with over 17 percent holding an auto loan and 16 percent carrying a credit card from their credit union. This activity helped drive the total loan balances at U.S. credit unions to over $721 billion.

Lending success is evident in the new highs reached in national share of key lending markets, including 8.4 percent of first mortgage originations, 16.3 percent of auto loans granted, and 5.3 percent of all credit card balances.

“In 2013 you saw positive loan growth, but it’s the acceleration of that momentum carrying into 2014 that has many optimistic about what that can mean for 2015 as well,” said Jon Jeffreys, Trendwatch presenter and managing partner at Callahan & Associates.

Credit unions are also succeeding outside the loan arena, as more consumers are making credit unions their primary financial institution. With membership topping 100 million in 2014, over 54 million checking accounts are now held by credit union members. The shift towards credit unions as primary financial institutions has resulted in a record average credit union member relationship – the combined average loan and savings amount – that now tops $16,300.

For information on acquiring a recording of Trendwatch, please call Callahan & Associates at 1-800-446-7453.

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 that 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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Salvador Lopez
Callahan & Associates
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