WASHINGTON—Credit unions outpaced commercial banks across all consumer lending and asset quality categories, according to research conducted by Callahan & Associates on third quarter data released by NCUA and the FDIC.
The data is based on figures for 6,216 credit unions and 5,410 commercial banks.
According to Callahan’s, annual growth of the credit union loan portfolio rose 10.7% as of Sept. 30, 2015, compared with 6.6% for commercial banks. By loan type, credit unions posted 8.7% growth in real estate, 14.8% growth in auto, and 6.5% growth in credit cards. Banks posted 4.8%, 7.6%, and 3.5% growth, respectively, Callahan’s said.
Auto loans accounted for 33.1% of the loan portfolio at credit unions and 4.9% of the portfolio at commercial banks, as of June 30, 2015. Other loans comprised nearly 38.3% of the banks’ loan portfolio.
“Credit unions continue to provide American consumers outstanding value in an increasingly competitive landscape for financial services, and it shows, as the not-for-profit cooperative model continues to produce outstanding growth metrics across the board,” says Jon Jeffreys, managing partner at Callahan & Associates.
In addition to posting strong loan growth, credit unions are improving asset quality. Credit unions reported a delinquency ratio of 0.78% as of Sept. 30, 2015, compared with 1.59% at banks, Callahan’s said.