For the first time since 2008, loan growth at credit unions has exceeded deposit growth.
The $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.
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 also has picked up, with originations increasing 10% from year-ago levels.
Analysis released by Callahan & Associates found that the $621 billion CU loan portfolio now is 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 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. “New auto loans are the fastest growing component of the industry’s loan portfolio. Supported by surging new car sales, new auto loan balances are up 11.2% over the past year. Used auto lending also remains strong as credit unions offer a variety of refinancing programs to help members lower their monthly payments. In addition to the strong auto lending results, credit union credit card balances topped $40 billion for the first time at midyear.”
