Ohio’s credit unions added more than 28,000 new members, opened 54,200 checking accounts and increased loan originations by 35%, according to the Ohio Credit Union League’s Quality Performance Summary released this week.
“From an economic standpoint, it is encouraging to see an increased demand in consumer loans, which indicates Ohioans are again becoming comfortable enough to start to use credit,” Paul Mercer, OCUL president, said of the Monday report, which analyzes data from June 2011 to June 2012. “We haven’t experienced this in the last few years with consumers focused on paying down debt.”
First-mortgage originations through June 2012 were well above levels reported in the first six months of 2011, according to the Columbus-based league.
For example, Ohio credit unions originated $1 billion in first mortgages during the first half of 2012, up 68.8% from 2011. First mortgages outstanding grew 6.3% annually to reach $4.5 billion at the state’s credit unions. In addition, Ohio credit unions sold $382.7 million in first mortgages to the secondary market in the first six months of 2012. Every component of loan originations, except member business loans, posted an annual increase in June.
What’s more, new vehicle sales are back on the rise, up 18.3% from June 2011, which translated to growth in the credit union new auto portfolio for the first time since the third quarter 2007. Ohio credit unions have historically reported above-average auto loan growth, and balances rose by 11.1% in the second quarter. Used auto loan balances in Ohio increased 10.9% annually, as new auto balances rose 11.4% during the same time.
Despite adding 28,000 new members, Ohio credit union membership growth was slower than the industry average of 2.3%. Membership has grown at a compound annual growth rate of 49 basis points over the past five years.
Business loan balances in Ohio grew 12.3% from the previous June, which is faster than the national average of 8.3% during the same period, the OCUL said. Outstanding business loan balances stood at $456.2 million at the end of the second quarter.
However, during the first six months of 2012, Ohio credit unions originated $62.8 million in business loans, down 92 basis points from the $63.3 million in originations in the first half of 2011, the league said.
According to the OCUL, the state’s credit unions are on a faster merger pace than in 2011. With seven mergers in the first half of 2012, Ohio is on pace for 14 mergers for the year, which is close to historical consolidation rates.