WASHINGTON–Credit unions in the U.S. continue to make more than $1 billion a day in new loans as total loan balances hit a new high-water mark.
Growth in shares also shows members are “reinvesting” in their CU relationships, according to Callahan & Associates.
Data released during Callahan’s 3Q15 Trendwatch webinar show loan balances are now at a record $779.7 billion after 10.8% year-over-year growth, which is the highest third quarter growth rate since 2005. Driving the outstanding growth are new autos at 17.8%, used autos at 13.3%, and first mortgages at 10.3%.
Credit unions now hold 16.4% auto financing market share, marking the industry’s highest point since September 2009.
Led by a 41.2% increase in first mortgage originations, total originations are up 18% over the same time last year. There are 10 states – Nevada, Colorado, District of Columbia, Rhode Island, Vermont, Delaware, Maryland, New Hampshire, Minnesota, and Hawaii – where credit unions boast at least 30% loan origination growth, Callahan’s reported.
Meanwhile, membership increased 3.7% year-over-year – reaching 103.6 million members – while share growth rose 6.3%.
“Share growth outpacing member growth suggests that members are reinvesting in their relationship with their credit unions. In fact, the average member relationship has increased $700 year-over-year to reach an all-time high of $16,753,” said Callahan’s in its analysis.