Credit Union Shares Reach $1 Trillion While Lending Continues to Thrive in the Second Quarter

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Callahan & Associates' second quarter Trendwatch webinar reveals impressive credit union growth in both the savings and lending segments.

“In a macro environment where some of the other market participants are starting to charge for checking, I think we’re seeing some momentum in something our industry takes for granted, which is free checking."

In an indication that member relationships continue to grow, credit union shares increased 5.1 percent year-over-year to reach $1 trillion for the first time ever according to second quarter data from Callahan & Associates’ Trendwatch.

Member usage of core accounts is driving the growth, with regular shares growing at 9.1 percent and share drafts growing at an equally impressive rate of 8.4 percent during this time frame.

“In a macro environment where some of the other market participants are starting to charge for checking, I think we’re seeing some momentum in something our industry takes for granted, which is free checking,” said Jon Jeffreys, managing partner of Callahan & Associates.

The data also indicates that members are increasingly turning to credit unions for their lending needs. Through the second quarter, credit unions originated the highest ever amount of loans for the first six months of the year, exceeding $200 billion year-to-date. Additionally, 12-month growth in outstanding loans continues to accelerate, now standing at 10.7 percent as of the second quarter. Three loan categories in particular are seeing robust growth, with new auto at 19.6 percent, used auto at 13.2 percent, and member business lending at 12.6 percent.

With strong numbers on both the savings and lending sides, the average member relationship increased 4 percent from the same time last year to reach $17,131. This indicates that members are increasingly turning towards credit unions for all of their financial needs.

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 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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Salvador Lopez
Callahan & Associates
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