Credit unions continued to rack up big mortgage numbers for the second quarter, and their share of the originations market is approaching 7%.
According to Callahan & Associates, credit unions originated 6.8% of all first mortgages in the U.S. in the first half of 2013. The pace of home equity lending has also picked up with originations increasing 10% from year ago levels.
Credit unions’ $66.1 billion in first mortgage originations is the highest ever through June, helped by a record $34.9 billion in home loans being granted to members during the second quarter.
Overall, for the first time since 2008, loan growth at credit unions has exceeded deposit growth, while net worth ratios have also hit a five year-high.
Analysis released by Callahan & Associates and by NCUA last week found that the $621-billion CU loan portfolio is now up 5.4% over the past 12 months, outpacing share growth of 4.6%.
"Six months into 2013 the credit union industry's lending activity is on a record pace with $175.1 billion in loans originated, or $1 billion dollars a day," Callahan & Associates said.
Six states have posted at least a 20% increase in loan originations, led by North Dakota at 27.6% and Idaho at 30.1%.
"Consumer lending is a key driver of growth, with over $91 billion in originations through June," Callahan's reported, citing a surge in auto lending. In addition to the strong auto lending results, Callahan's noted credit card balances topped $40 billion for the first time at mid-year.
Meanwhile, NCUA said its mid-year numbers show the four quarters concluded with 2Q13 represented 5.5% loan growth, the strongest four-quarter growth since 2009. The agency said membership in federally insured CUs is at 95.2 million, an all-time high, with 2.1-million people joining in the year ended June 30.
Overall net worth in credit unions stood at 10.5% at June 30, up 34 BPs from one year earlier. The ratio is the highest since Q4 2008.
Other Data:
- The delinquency ratio stood at 1.04%.
- Overall ROA stood at an annualized 85 BPs.
- Credit unions of more than $500 million in assets continue to lead most performance categories and hold two-thirds of all CU assets. The one area where smaller CUs do lead: higher net worth ratios.
