“The banking industry holds only 60.8 percent of its loan portfolio in consumer-facing loans — auto, mortgage, and credit cards — while those loans comprise nearly 90% of the credit union loan portfolio.
Washington, DC (PRWEB) September 14, 2015
U.S. credit unions outpaced banks across all consumer lending and asset quality categories, according to research conducted by Callahan & Associates on second quarter data released by the National Credit Union Association (NCUA) and Federal Deposit Insurance Corporation (FDIC).
Credit unions increased their loan portfolio 10.6 percent as of June 30, 2015, compared to 5.4 percent for banks. By loan type, credit unions posted 8.2 percent growth in real estate, 15.4 percent growth in auto, and 6.8 percent growth in credit cards. Banks posted 4.4 percent, 7.2 percent, and 2.2 percent growth, respectively.
Auto loans accounted for 32.9 percent of the loan portfolio at credit unions and 4.7 percent of the portfolio at banks, as of June 30, 2015. Other loans comprised nearly 40 percent of the banks’ loan portfolio, slightly more than a half of which were commercial and industrial loans.
“Comparing credit union and bank loan data reveals an interesting story,” said Jon Jeffreys, managing partner at Callahan & Associates. “The banking industry holds only 60.8 percent of its loan portfolio in consumer-facing loans — auto, mortgage, and credit cards — while those loans comprise nearly 90% of the credit union loan portfolio. Consumers are relying on credit unions for their personal banking needs because credit unions understand what members need at all stages of their financial lives.”
In addition to posting strong loan growth, credit unions are improving asset quality. Credit unions reported a delinquency ratio of 0.74 percent as of June 30, 2015, compared to 1.68 percent at banks.
Callahan & Associates pulls both NCUA and FDIC call report data from its Peer-to-Peer program. For more data comparing credit unions to banks, contact Callahan & Associates at 800.446.7453 or vtaylor(at)callahan.com.
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