Credit Unions Outpace Banks in Q2 Lending
Credit unions originated almost twice as many loans as banks did in the second quarter of 2015, according to an analysis of NCUA and FDIC data conducted by the Washington-based consulting firm Callahan & Associates.
According to Callahan, credit unions increased their loan portfolios by 10.6% as of June 30, 2015, compared to banks’ 5.4% increase.
Credit unions saw an 8.2% increase in real estate loans, 15.4% increase in auto loans and 6.8% increase in credit card loans. In comparison, banks posted a 4.4% increase in real estate loans, 7.2% increase in auto loans and 2.2% increase in credit card loans, Callahan said.
“Comparing credit union and bank loan data reveals an interesting story,” Callahan & Associates Managing Partner Jon Jeffreys said. “The banking industry holds only 60.8% of its loan portfolio in consumer-facing loans – auto, mortgage and credit cards – while those loans comprise nearly 90% of the credit union loan portfolio. Consumers are relying on credit unions for their personal banking needs because credit unions understand what members need at all stages of their financial lives.”
Callahan also reported credit union loan delinquency came in at less than half of that of banks – 0.74% at credit unions versus 1.68% at banks.