With record growth in merchant and indirect lending last year,Texas Dow Employees Credit Union said it is looking to expand itsfootprint into Houston.

The $1.8 billion cooperative in Lake Jackson, Texas, said in thefirst three quarters of 2012, indirect auto lending was up by 48% year-over-year with aportfolio balance of $402 million and is on track to be the biggestproduction year in the history of the program.

Merchant lending production at TDECU was also up by 33% with aportfolio balance of $26 million, according to the credit union.Production in the specialty products category was up 133%year-over-year with a portfolio balance of $15 million.

This combined growth, coupled with a demand for its services inHouston's metro area, has spurred TDECU to expand its footprint inthe region.

In Houston alone, where TDECU said it is focused on bringing more of its services tomembers following a merger with two area credit unions, indirect lending has grown50% year-over-year.

Chuck Smith, TDECU's vice president of indirect lending,attributed the growth to consumers' pent up demand for goodsfollowing a slowing of the economy.

“Consumers had been cautious about spending and put off makinglarge purchases, but with signs of a moderately growing economy andattractive financing, they are ready to spend and we're ready tohelp them get what they want,” Smith said.

To keep up with the demand, TDECU's indirect lending andmerchant lending division grew by 20% in 2012 to assistmembers, merchants and dealers, according to the credit union.

“We have great people at TDECU. They view their biggest priority as delivering a qualityof service and a portfolio of products that serve the community atlarge,” Smith said.