Credit union lending during the second quarter of 2014 was the strongest it's been since 2005, according to Callahan & Associates' 2Q14 Trendwatch.

The Washington, D.C., consulting firm today released data showing that credit union lending overall saw nearly 10% year-over-year growth during the second quarter. Specifically, credit unions enjoyed double-digit growth in first mortgages, new auto loans, used auto loans and member business lending. Consumer loan originations increased 60% compared to the first half of 2013 and 90% compared to the first half of 2012.

Mortgage originations also contributed to loan growth, with credit unions capturing their highest ever market share during the first half of 2014 at 8.4%. The trend continues a strong run for credit unions, which have captured at least a 7.5% market share for each of the past four quarters.

“We're seeing a shift in the mortgage market to smaller lenders,” Callahan EVP Jay Johnson said. “The largest lenders are pulling back and re-assessing operations while the smaller lenders are demonstrating their flexibility by offering different kinds of products, such as ARMs and non-QM mortgages.”

Partly due to the increase in loan income, credit unions' total revenue for the first two quarters of 2014 increased over the same period from 2013. It marks the first time that revenue has risen since 2009. The key to such strong performance may be an uptick in the overall economy, the firm noted.

Instant Insights /

Credit Unions Report Strong 2Q Loan Growth

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