As record growth starts to ease up, it is clear that some credit unions are pulling back on member business lending activity.
Year-to-date, MBL portfolios are up just 1.7%, according to the October issue of CUNA Mutual Group's Credit Union Trends Report. Revised data indicated that member business loan growth slowed to 7% at the end of August.
Total loan growth is less than half of the 2008 pace and roughly a third of its 10-year average annual gain. Through the first eight months of 2008, loans were up 5.1%; in 2009 YTD gain is just 1.7%. In August, $3.8 billion or 38% of the YTD increase occurred that month with all loan classes up except second mortgages. The combination of loan payoffs and first mortgage loan sales are just under new originations, which may mean total loan growth will remain low, the data showed.
Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.
Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking credit union news and analysis, on-site and via our newsletters and custom alerts
- Weekly Shared Accounts podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the commercial real estate and financial advisory markets on our other ALM sites, GlobeSt.com and ThinkAdvisor.com
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
