Credit Union Loan Growth Doubles that of US Banks

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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).

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“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.

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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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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Victoria Taylor
Callahan & Associates
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