Competing with some of the nation’s biggest banks, five credit unions made the list for the 25 largest auto lenders among depository institutions in the United States.
The Alexandria, Va.-based cooperative grew its portfolio by 10.9% during that period by pricing its loans very competitively, the data showed.
“Not including any current rate specials, Pentagon Fed's average rate on a 60-month new car loan was 2.74% as of SNL's most recent rate collection date, significantly below the national average rate of 4.24%,” according to the Charlottesville, Va.-based data and analytic firm, which released its analysis Wednesday.
Other credit unions that made SNL Financial’s top 25 auto lender list were the $52 billion Navy Federal Credit Union in Vienna, Va., which ranked 14th, $6 billion Security Service Federal Credit Union in San Antonio, (17th), $5 billion Alaska USA Federal Credit Union in Anchorage, Alaska (23rd) and the $5 billion America First Federal Credit Union in Riverdale, Utah (25th).
Auto loans amassed during the fourth quarter were:
- Navy Federal $691 million
- Security Service FCU $520 million
- Pentagon FCU $271 million
- Alaska USA FCU $224 million
- America First FCU $170 million
According to SNL Financial, Ally Financial Inc. in Detroit ranked first in its top 25 list of the top auto lenders followed by Wells Fargo & Co. in San Francisco, JP Morgan Chase & Co. in New York, Capital One Financial Corp. in McClean, Va., and Bank of America Corp. in Charlotte, N.C.
Despite the rankings, SNL Financial said auto loans only grew 1.27% over 2012’s third quarter figures.
Those figures are in contrast to auto lending growth within the credit union industry last year. As of January, overall vehicle loans were $15.6 billion or 9.3% above the January 2012 level, according to CUNA Mutual Group’s March Credit Union Trends Report. As a result, annual growth in January was at its highest level in more than seven years.